Transfer Pricing Documentation​

Transfer Pricing Report And Audit

Once the International Transactions are entered throughout the year, it is imperative to undertake the Transfer Pricing Documentation to record the Arm’s Length Price and Comparability Analysis post the year end. Such an analysis is the ultimate proof that the transactions entered between the Associated Enterprises are at an Arm’s Length Price and there is no potential tax avoidance or tax risks.

Specific to India, the onus to verify the Transfer Pricing Documentation is on an independent Chartered Accountant, who undertakes a Transfer Pricing Audit and provides his opinion in the form of a certificate in Form 3CEB (Disclosure Form). Many countries in GCC and EU have also adopted such principle of Disclosure Form thereby reducing burden on the Tax Authorities for preliminary review of the International Transactions.

We have helped our clients in their Indian transfer pricing documentation, global transfer pricing documentation, drafting of Function, Asset and Risk analysis (FAR), drafting of company and group overview, updating of Industry analysis for the industry in which they are operating, determination of Arm’s Length Price, comparability analysis, ensuring their transfer pricing audits and form 3CEBs.

We have also assisted our clients in providing transfer pricing certifications and comfort letters, special transaction benchmarking and documentation such as royalties, interest rates, management services, etc., preparation of their group global master file and making amendments related to additional requirements under Indian regulations, preparation of Country-by-Country Reporting (CbC Reporting) report.

Many of our clients have adopted safe harbour which reduce or eliminate liability in certain situations as long as certain conditions are met. We help them in filling of relevant applicable, forms and compliances for the same.

In case of foreign companies earning income in India, they are required to file their income tax return and if the income is earned from an associated enterprise then the foreign companies need to get their transfer pricing model audited in Form 3CEB and maintain documentation in India. We also assist non-resident foreign companies in filing of income-tax returns and tax declarations,  maintenance of transfer pricing documentation, assistance in issue of transfer pricing audits in Form 3CEBs.

For clients who have units or operations in tax holiday, startup or the new manufacturing tax holiday

  • Transfer Pricing audit in Form 3CEB

    As per Indian transfer pricing regulation, the international transactions of a company needs to be audited by a Chartered Accountant (CA). The form 3CEB provides details on international transactions and specified domestic transactions and is mandatory if you deal with your associated enterprises / related parties. No threshold is specified for such form 3CEB. Such a form needs to be filed through the electronic tax portal with an audit report from a CA on or before the due date, which is one month prior to filing of return of income and coincides with the due date for tax audits.

  • Transfer Pricing study report / Local files

    India follows the three-tier transfer pricing structure of local file, master file and CbCr. The Indian local file is termed as transfer pricing study report (TPSR) and such a report is used to justify and test the transactions that are undertaken by the Indian multinational company with its international associated enterprise. The contents of Indian transfer pricing study report are like the OECD acceptable guidance, however the same are specifically mentioned in Rule 10D of the Income-tax Rules, 1962. This includes information on the taxpayer’s group structure and business activities, industry analysis, functional analysis and comparability analysis. We undertake end to end documentation and analysis for our clients.

  • Global Transfer Pricing Documentation

    We undertake global benchmarking and global documentation for our clients. Our dedicated international desk ensures that they bring our expertise from every major jurisdiction in the TP documentation. We have undertaken global transfer pricing documentation for USA, UK, Netherlands, Germany, South Africa, Saudi Arabia, Qatar, Egypt, Japan, Korea, Australia etc.

  • Global Master File

    Master file is a global group’s document that shall be prepared as per the format given by OECD which is implemented on similar lines in India. Master file includes information about the global structure, products and services, suppliers, lenders, etc. in a particular format. We undertake preparation and modelling of transfer pricing master file at a global level for our clients.

  • Country-by-Country reporting

    For corporation where group turnover exceeds INR 5,500 crores (USD 750 million), the group shall file CbCr in the parent country jurisdiction in a particular format disclosing information on profitability, number of employees, taxes paid etc. in respective tax jurisdictions. We assist large multinational companies in pulling together such a report.

  • Safe Harbour Regulations – Form 3CEFA

    To reduce potential litigation for specific sectors of the industry including transactions like loans and guarantees, Safe Harbour rules were introduced which could be opted by the companies if they fit the applicability of safe harbour regulations. We assist companies to evaluate the applicability and ensure that such option is fitting with the operations of the company to ensure compliance. End to end handholding , application and representations for safe harbour rules is what we undertake for our clientele

  • Transfer Pricing comfort letters

    The statutory auditors of the company often needs assurance and support from the transfer pricing auditors and consultants of the company regarding the methodologies followed and risk involved in the transfer pricing model of the client. We provide such assurance letter to the statutory auditors so that your audit process is simplified and completed timely.