Transfer Pricing (Documents And Certification)
Indian income tax rules stipulate that multinational companies must maintain documents pertaining to international transactions or specified domestic transactions. Failing to do so will invite unnecessary penalties and disciplinary action from the tax department. It is, therefore, crucial for such organisations to maintain proper documentation and be compliant so that they can run their business hassle-free.
Since transfer pricing laws can be very complex, it would be advisable to let a professional firm like CM Shah & Co. take care of all your transfer pricing documentation needs. We possess in-depth experience related to dealing with transfer pricing issues for our clients belonging to various industries.
Our transfer pricing services also include the determination of arm’s length price, country by country reporting, transfer pricing certification, Advance Pricing Agreement, Safe Harbor Rules, and more.
With our experience, we develop a transfer pricing policy for transactions like the purchase of machinery, buying of fixed assets, sale of finished goods, royalty fees, management fees, loan payable or received, and many more.
Let us first understand in detail what documents you will need to prepare and submit to the tax authorities.
Transfer Pricing Documentation Requirements
These are the main documents you will need to prepare:
- Transfer Pricing Certification (Form 3CEB)/A report from a chartered accountant
- Country by Country Report and Master File
- Documents containing details of international and specified domestic transactions.
Transfer Pricing Certificate
The law requires a taxpayer to obtain a Transfer Pricing Certificate (Form 3CEB) that is signed by an accountant. The form contains three parts, with Part A consisting of general information, Part B with details of international transactions, and Part C with particulars of Specified Domestic transactions.
Country by Country Report
According to BEPS (Base Erosion and Profit Shifting) Action plan 13, the OECD (Organisation for Economic Cooperation and Development) has directed multinational companies to provide a report to the tax authorities once a year for every jurisdiction where they conduct business. This report is known as the Country by Country Report, which contains the main elements of financial statements as per the specific jurisdiction. The report enables local authorities to look at details like income tax paid, revenue, or capital.
It contains important information regarding a company’s international operations and its transfer pricing policy.
Failure to maintain and submit these mandatory documents or under-reporting your income can lead to hefty penalties. CM Shah & Co.’s dedicated team will help you prepare these documents in time to avoid such penalties and ensure you are in the good books of the tax authorities.
Why choose CM Shah & Co. for Transfer Pricing (Documents And Certification) services?
- Incomplete knowledge about transfer pricing regulations can lead to penalties and other undesirable outcomes that can harm your business’s financial structure and your reputation. That is why it is better to let our transfer pricing experts handle everything for you. We have a professional and dedicated team with a sound knowledge of Indian transfer pricing regulations.
- We will understand your business profile, your objectives, and the nature of your transactions and provide transfer pricing documentation based on your unique requirements.
- We are one of the leading transfer pricing service providers, and with our experience in transfer pricing matters and our professional approach, we will help you navigate such transactions smoothly.
- Our team will collect all details of the business transactions of the parties who are part of the transactions.
- We will conduct risk analysis and select the most suitable transfer pricing policy for your business, adhering to the applicable transfer pricing rules and regulations.
- We always stay in constant touch with our clients, and our efficient communication helps us in getting all relevant information and makes preparing the documentation easier and accurate.
- With our detailed research and in-depth analysis, we prevent any transfer pricing risk that may arise in the future for our clients.
Connect with us for the best transfer pricing services at affordable prices.