• Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/10/2014

India - Budget 2014 aligns transfer pricing to international standards 

July 10: In India’s budget 2014, presented 10 July 2014, the Finance Minister proposes amendments to India’s transfer pricing rules—including the introduction of:
  • Advance pricing agreement (APA) “rollback” provisions, so that an APA could be executed to apply to prior years
  • A penalty regime for failures to provide information or transfer pricing documentation when requested by a Transfer Pricing Officer
  • A price / margin range for determining arm’s length price, thus aligning India’s transfer pricing rules to leading international practices
  • Rules to allow multiple year data for benchmarking instead of transfer pricing audits and adjustments being based on single year data, as under current practice
  • “Deeming” transfer pricing provisions, to be applied to transactions between a taxpayer and an independent party—whether or not a resident of India—when there is a prior arrangement between that party and a related entity (to be effective 1 April 2015)

Read a July 2014 report(PDF 431KB) prepared by the KPMG member firm in India: Budget 2014 proposals – India transfer pricing regulations aligned to international norms

Contact a tax professional with KPMG's Global Transfer Pricing Services.

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