As you can avail Lawlabz services sitting wherever you are, even during your business transactions across borders i.e international transactions carried out by Indian company with its associated enterprises outside India might get attracted under Indian Income Tax Act. These transactions are tested as to whether they are carried out at an
As you can avail Lawlabz services sitting wherever you are, even during your business transactions across borders i.e international transactions carried out by Indian company with its associated enterprises outside India might get attracted under Indian Income Tax Act. These transactions are tested as to whether they are carried out at an arm’s length price (ie) the price at which an unknown willing buyer & seller will deal with goods/services.
It is the obligation of the Indian company which enters into international transaction with an associated enterprise to prove that the transaction entered is carried out at arm’s length price. Inability to prove would result in addition to taxable income. We at Lawlabz have sufficient resources, mechanism and experts to cater to such needs of our clients to deliver a workable solution based on the study report on your organisation.Competition & Tax Law Advisory & approval Package: [Rs.75,000 per transaction*]Strategy: To conduct a preliminary study in the organization functions, risks involved, employability of assets, etc… through a system of fair analysisProcedure: To arrive at a most appropriate method based on the report of fair analysis. Central Board of Direct Taxes (CBDT) has devised methods like comparable uncontrolled price method, Resale price method, cost plus method or transaction net margin method, etc…Compliance:
- Based on the reports and methods to prove that the transaction was at arms length only.
To prepare necessary documentation along with the valuation details of the purpose of inome tax.
