Are you doing related party transactions?
Cross-border transactions between related parties (parent and subsidiary) are quite common in the modern borderless world. This has led to framing tax regulations in every country to protect tax revenue.
In India, cross-border related party transactions are taxed as per the Transfer Pricing (TP) provisions under Income Tax Act, 1961.
Large multi-national companies are aware of TP regulations. But smaller companies often lack knowledge about Transfer Pricing or Arms Length pricing mechanism. They may think that amounts transferred from the parent company to India are just to meet salary and rent expenses, and hence there is no need to pay Income Tax (or Corporate Tax) in India.
Our Expertise
We have experience of serving over 150 companies from 26 different countries. We specialize in serving small and medium companies who set up business in Bangalore, India.
Those who seek our services may write to anubhav@cagaas.in or call 9958147088