Transfer Pricing Advisory
Transfer Pricing Advisory
In an increasingly globalized business environment, multinational corporations (MNCs) and businesses with international transactions must ensure compliance with Transfer Pricing (TP) regulations. The Indian government has implemented stringent TP laws to prevent profit shifting and ensure fair taxation. MN & Co. provides expert advisory, documentation, and compliance support to help businesses navigate the complexities of transfer pricing while optimizing tax efficiency.
For multinational businesses, we offer specialized transfer pricing services to manage cross-border transactions between related entities. Our experts assist in preparing detailed transfer pricing documentation and study reports as required by Indian regulations, benchmarking inter-company transactions to ensure they meet the arm’s length standard. We also provide advisory on transfer pricing strategies to optimize global tax efficiency and represent clients during transfer pricing assessments or dispute resolution, minimizing the risk of adjustments and penalties.
1. What is Transfer Pricing?
Transfer pricing refers to the pricing of transactions between related entities (such as parent companies, subsidiaries, and sister concerns) in different tax jurisdictions. These transactions include:
1. Sale or purchase of goods and services
2. Licensing of intellectual property
3. Intra-group loans and financial transactions
4. Management fees and cost-sharing agreements
The primary objective of transfer pricing regulations is to ensure that such transactions are conducted at arm’s length, meaning they should be priced as if they were between unrelated parties under market conditions. This entails determining the profit that an Indian entity would have generated in these transactions if conducted with non-associated entities, even when dealing with FAEs.
2. Why choose us as your Transfer Pricing Advisors?
When you choose us for transfer pricing services, you unlock a range of benefits:
Tailored Solutions:
We know that every business is unique. That’s why our team takes the time to understand your operations and objectives before crafting customized transfer pricing strategies. Our solutions align perfectly with your business goals and ensure compliance with both Indian regulations and global standards.
Expertise You Can Trust:
Our seasoned Transfer Pricing Advisors have a deep understanding of Indian transfer pricing regulations and international best practices. With a proven track record of navigating even the most complex transfer pricing challenges, we’re equipped to provide expert guidance and support every step of the way.
Proactive Approach:
We don’t just solve problems; we help you avoid them. By working closely with you to identify potential transfer pricing issues early, we minimize risks and ensure smooth compliance with Indian transfer pricing laws, avoiding disputes with tax authorities.
Cost-Effective Services:
Our solutions are designed to be both effective and affordable, ensuring you get the best value without compromising on quality.
In short, choosing MN & Co. as your Transfer Pricing Consultants gives you access to tailored, proactive, and cost-effective solutions delivered by experts you can rely on. Let us help you ensure compliance, streamline your transfer pricing processes, and optimize your global tax strategy.
FAQ’s
Transfer pricing refers to pricing transactions between related entities in different tax jurisdictions, ensuring compliance with arm’s length principles.
Non-compliance can lead to tax penalties, adjustments, and scrutiny from tax authorities.
Businesses must maintain a Master File, Local File, and Country-by-Country Report (CbCR) if they meet certain revenue thresholds.
Methods include Comparable Uncontrolled Price (CUP), Resale Price Method, Cost Plus Method, Profit Split Method, and Transactional Net Margin Method (TNMM).
We assist with TP documentation, benchmarking studies, dispute resolution, and Advance Pricing Agreements (APA).