Transfer pricing wing raises tax demand by Rs 40k in 2011-12

05 Dec 2011 Evaluate

The transfer price wing of the income tax department, under the ministry of finance, which looks into international transactions of Indian firms, has made an extra tax demand of Rs 40,000 crore for current financial year, which is double of last fiscal year.

According to a senior income-tax official, from this Rs 40,000 crore additional tax demand, more than Rs 20,000 crore from the assessment of 11 Multi-Nationals, which includes foreign banks and telecom firms, who mispriced their international transactions.

'It is not that these additions are going to recur year after year on these companies. These were one-off instances such as acquisition of another company, where we have found full transaction value had not been reported. Such additions may not recur every year,' income-tax official said.

This year, the transfer pricing regime has ventured into new territories such as intangibles including brand building and corporate guarantees given to associate firms. In all more than 2,000 transfer pricing returns have been taken for scrutiny, of which additions were made in 1,200 returns and remaining 800 returns were accepted without any scrutiny. The Transfer pricing rules were introduced in the Finance Act 2001 in bid to make sure that India does not lose revenue due to it from firms that undertake international transactions between related parties.

The transfer pricing, an adjustment of charges made between related parties for goods, services or use of property, in recent time due to huge movement of funds by the MNCs is an emerging area of taxation. The developed countries have already laid transfer pricing mechanism and developing counties in Asia and Africa are also setting their own mechanism to increase volume of trade between related prices, which is estimated to account for 60% of the international transactions.

'Our transfer pricing officers are at par with the best in the world. Some of the Indian officers have been selected by the OECD authorities for improving the current TP structure of OECD countries,' a senior Income-Tax official said.

SEBI Registered: Investment Adviser - INA000013323

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

Data provided by Accord Fintech Pvt. Ltd.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Transfer pricing wing raises tax demand by Rs 40k in 2011-12

Do your Financial Planning

Invest using Quality-at-Reasonable-Price(QaRP)

Know the opportunities right

Invest with conviction

Read How the Heck to Invest and Reach Nirvana,