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Showing posts with the label Indian taxation

Transfer pricing: Aligning Indian taxation with global standards

The govt is slowly aligning transfer pricing legislation with global best practices and standards. The move is aimed at lowering tax disputes and making it easier for companies to do business in India Transfer pricing deals with fixing the price of goods or services transferred between two related entities, either cross-border or domestic, for determining profit and levying of taxes. It is among the top causes of tax-related disputes in India India has the highest such litigation cases across the globe The number of cases scrutinised has nearly quadrupled from 1,061 in 2005-06 to 4,290 in 2014-15. So far, Indian courts (including tribunals) have delivered about 1,800 TP rulings. During FY15, the number of rulings pronounced rose 40 per cent compared to FY14 TP involves high costs and low gains for the government, about 70% of the cases across the Supreme Court, high courts and tribunals have been adjudicated in favour of taxpayers To avoid disputes, th