TOP TIPS: India’s transfer pricing rules
As India’s tax watchdog tightens its grip on transfer pricing, Vijay Iyer, Ernst and Young’s partner and national leader of transfer pricing, offers in-depth advice on dealing with regulatory uncertainties.
India’s tax coffer enlarged by TP adjustments:
The total value of tax demand arising out of transfer pricing (TP) adjustments made by the Indian tax authorities completed in December 2011 during the audit cycle for financial year (FY) 2007-2008 amounted to about $3 billion. In the previous audit cycle for FY 2006-2007, the figure was only $1.6 billion.
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