Guide to Transfer Pricing with Transfer Pricing Audit

Contents: Division one: Introduction to transfer price, transfer pricing and TP legislation. 1. Introduction. 2. Transfer pricing provisions of chapter x – when applicable to an assessee. Division two: International transactions. 3. Who are ‘associated enterprises’ (AES)?. 4. What is ‘international transaction’? 5. International transactions: purchase, sale or lease of tangible property. 6. International transactions: intangible property transactions. 7. International transactions: borrowing or lending of money/financing. 8. International transactions: provision of services. 9. International transactions: cost contribution agreements. 10. Business restructuring or organisation. Division three: specified domestic transactions. 11. Applicability of transfer pricing provisions to specified domestic transactions. 12. Definition of specified domestic transactions. 13. SDTS – expenditure in respect of payments to related parties. 14. SDTS – transfer of goods or services to or from eligible unit – section 80a. 15. SDTS – transfers of goods or services referred to in section 80-IA(8). 16. SDTS – business transacted by assessee with any other person – section 80-IA(10). 17. SDTS – any other transaction referred to in any other section of chapter vi-a. 18. SDTS – threshold limit. Division four: Computation of arm’s length price. 19. Effect of applicability of transfer pricing provisions. 20. What is arm’s length price. 21. How to compute arm’s length price. 22. Benchmarking: comparability analysis and comparables. 23. What is comparable uncontrollable price (CUP) method and how to apply it to calculate ALP? 24. What is resale price method (RPM) and how to apply it to calculate ALP? 25. What is cost plus method (CPM) and how to apply it to calculate ALP? 26. What is profit split method (PSM) and how to apply it to calculate ALP? 27. What is transactional net margin method (TNMM) and how to apply it to calculate ALP? 28. Any other method – rule 10AB. 29. Most appropriate method (MAM). 30. Transfer pricing adjustments. 31. International transactions: determination of alp for import of goods. 32. International transactions: determination of ALP for interest free loan to AES. 33. International transactions involving intangibles : determination of ALP. 34. International transactions: when development centres in India can be treated as contract R&D service provider with insignificant risk. 35. International transactions: determination of ALP for indenting activity. Division five: Transfer pricing procedures. 36. Power of AO to compute ALP. 37. Reference to transfer pricing officer – section 92ca. 38. Transfer pricing dispute resolution mechanism. 39. Safe harbour rules. 40. Advance pricing agreement. Division six: transfer pricing audit. 41. Obligation of assessees to maintain transfer pricing documentation. 42. Audit report. 43. Audit report & documentation – international transactions. 44. Audit report & documentation – specified domestic transactions. 45. Due date for filing return for assessees required to furnish audit report U/S 92E – section 139. 46. Time limits for assessment and reassessment- sections 153 and 153b. 47. Penalty – sections 271, 271AA, 271BA and 271G. Appendices.