Industry & Economy
-
Taxation
Transfer pricing adjustments on the rise
Our Bureau
New Delhi, Aug. 27 Transfer pricing adjustments made by the Income-Tax Department has shown a rise in value terms during the last three financial years going by the data made available to the Lok Sabha.
The number of cases in which transfer pricing adjustments have been done also showed an increase during the last three financial years.
Differences between transfer price and arm’s length price in case of certain companies have been found as a result of transfer pricing audit carried out by the department, Mr S.S. Palanimanickam, Minister of State for Finance, said in a written reply to a Lok Sabha question on tax evasion by way of transfer pricing.
The Minister also said that the orders of the transfer pricing officers get merged with the assessment orders passed by the assessing officers and that no centralized information was maintained relating to appeals filed against transfer pricing adjustments.
The Finance Ministry had last year raised the threshold limit for compulsory scrutiny of cross-border transactions (for transfer pricing audit purposes) from Rs 5 crore to Rs 15 crore. The threshold limit of Rs 15 crore is applicable from financial year 2005-06.
Related Stories:
A MAP for transfer pricing disputes
To whom does locational advantage accrue in transfer pricing?
Transfer pricing regulations should be sensitive to business dynamics
Transfer pricing presents substantial tax planning opportunities
Transfers that cross borders
The world of transfer pricing
More Stories on :
Taxation
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
