New Tax Rules for Indian Arm of Foreign Cos

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The finance ministry said safe harbour rules-a set of norms that would enable the income tax (I-T) authorities to accept without scrutiny the tax returns by the Indian units of foreign firms-would be soon put in place. 
“Safe harbour rules are at an advanced stage of consideration. I can’t share how the guidelines are going to be, it will be a very favourable programme. We are working on it and it will be in place as early as possible,” Central Board of Direct Taxes (CBDT) chairman S. S. N. Moorthy said at an Assocham seminar.
He said the norms would be taxpayer friendly. The CBDT has set up a committee to formulate rules for the safe harbour provisions on transfer pricing returns.
Transfer pricing refers to the price at which one arm of a firm transfers goods or services to another division of the same organisation, in order to calculate profit and loss separately.
The committee comprises senior tax officials of trade and industry as well as Institute of Chartered Accountants of India (ICAI).
September 14, 2010 / indiatoday

Ozg Transfer Pricing Consultant

Ozg Center | London | New Delhi | New York | Mumbai

Back Office Phone # 0091-9811415861-72-84-92-94

Email: transfer.pricing@ozg.co.in

www.TransferPricingConsultant.com

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