Transfer Pricing in India - Principles and Practice

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Description
This book "Transfer Pricing in India: Principles and Practice", is a culmination of. thoughts developed while dealing with transfer pricing issues in the capacity of Commissioner of Income-tax (Appeals) and Member, Income-tax Dispute Resolution panel, Bangalore. My deputation to the Maldives Inland Revenue Authority (MIRA), Male, as Resource person (Transfer Pricing), further enhanced my desire to articulate understanding on transfer pricing issues in form of a book.
I am sincerely thankful to Shri Akhliesh Ranjan, Member, Central Board of Direct Taxes, New Delhi, who in the capacity of Principal Chief Commissioner (International Taxation) encouraged me by according permission to author this book) and as Member, Central Board of Direct Taxes, New Delhi, gave me his blessings by agreeing to spare his valuable time to write the 'foreword' to the book. My sincere thanks to Shri P. K. Dash, Member, Central Board of Direct Taxes, who blessed the book with his encouraging message.
I am thankful to Mrs Priyanka Srivastava and other Editors for their valuable suggestions provided under the guidance of Shri Shreesh Chandra, Co-founder, OakBridge Publishing Pvt Ltd, Gurugram, who were helpful in improving contents of the book and bringing the book to the present shape. I sincerely acknowledge and thank the OECD publishing, Paris for granting their permission, to use certain excerpts from "OECD (2017), OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrators".
My family members namely my wife, Kusum and both my sons, Dhananjay and Mayank also deserve thanks for their immense encouragement and support. The views expressed in the book, dealing with the interpretation of the relevant provisions of the Income Tax Act, 1961, Income Tax Rules, 1962 and judicial pronouncements etc, are my personal views and not of the Income Tax Department. Due care has been taken in incorporating provisions of the Act, Rules, notifications, decisions etc, however, in case of any error or omission; relevant provisions of the Act, Rules, Notification, decision etc are to be referred to.
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Contents
 TRANSFER PRICING AND RELATED CONCEPTS
1. Transfer Pricing
2. Enterprise & Associated Enterprise
3. Transaction & International Transaction
4. Specified Domestic Transaction
TRANSFER PRICING METHODS, COMPARABLE AND COMPARABILITY ADJUSTMENTS
1. Introduction to Transfer Pricing Methods
2. Most Appropriate Method (MAM)
3. Comparable Uncontrolled Price Method
5. Arm's Length Price
4. Resale Price Method (RPM)
5. Cost Plus Method
6. Profit Split Method
7. Transactional Net Margin Method
8.Other Methods
9. Selection of Comparables & Comparability Adjustments
DETERMINATION OF ARM'S LENGTH PRICE, ADJUSTMENTS & TOTAL INCOME
1. Manner of determination of ALP (ALP to be determined before 01-10-2009).
2. Manner of determination of ALP (Proceeding pending before TPO on 01-10-09 to the transactions undertaken upto 31-3-2011)
3. Manner of determination of ALP (Transactions undertaken between 1-4-2011 to 31-3-2014)
4. Determination of ALP (Transactions undertaken from 1-04-2014).
5. Determination of ALP by the AO and TPO
6. Secondary Adjustments
7. Giving Effect to ALP determined...
TRANSACTION SPECIFIC TRANSFER PRICING ISSUES
1. Information Technology and Information Technology Enabled Services
2. Financial Transactions.
3. Royalty for use of Intangible Property
4. Cost Contribution Arrangements (CCA) and Intra-Group Services
5. Advertising, Marketing and Sales Promotion (AMP)
RESOLUTION OF TRANSFER PRICING DISPUTES
1. Advance Pricing Agreement (APA)
2. Mutual Agreement Procedure (MAP)
3. Safe Harbour Rules for International Transactions........
4. Safe Harbour for Specified Domestic Transactions
5. Appeal & Objection
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Author Details
Shri O. P. Yadav, a Post-Graduate in Economics, is an Indian Revenue Service Officer of 1988 Batch. He is at present working as Principal Commissioner of Income-tax Jabalpur (MP).
He has a rich experience in dealing with transfer pricing issues in India related to 13 years since inception of transfer pricing provisions under the Income-tax Act, 1961. These issues were dealt by him as Commissioner (Appeals) for International Taxation and Transfer Pricing, Bangalore and as Member, Income-tax Dispute Resolution Panel, Bangalore. He has also participated in the training course conducted by the OECD on Transfer Pricing and Advanced Transfer Pricing', in addition to courses conducted by the National Academy of Direct-taxes. Considering his in-depth knowledge on the subject, he was deputed by the Central Board of Direct Taxes, New Delhi to the Maldives Inland Revenue Authority, Male as a resource person on Transfer Pricing' twice.
He is involved in capacity building of officers of Income-tax Department in India since last 15 years as guest faculty to The National Academy of Direct Taxes, Nagpur and its Regional Training Institutes at Mumbai, Bangalore, Chennai, Kolkata and Bhopal. He has also delivered lectures in 8 International training courses organized by the National Academy of Direct Taxes for the Inland Revenue Service Officers of Sri Lanka.
The orders passed by him in various capacities in the Income-tax Department, have been recognized in multiple volumes of 'Let Us Share', an annual compilation of best practices and orders published by the Central Board of Direct Taxes, New Delhi. The Central Board of Direct-taxes has awarded six certificates of appreciation for these contributions. His contribution has also been included in 'Investigation Techniques' an in-house publication of the Central Board of Direct Taxes and 'Technical Guide for Assessing Officer' an in-house publication of the Income Tax Department, Madhya Pradesh & Chhattisgarh.
Shri O. P. Yadav has authored a book 'Master Guide to Corporate Taxation' published by LexisNexis, a leading law publication, which has gone into two editions (July 2016 & April 2017).
He was awarded Gold Medal for his best all-round performance during probationary training by the National Academy of Direct-taxes. He was a member of the study tour to HMRC, UK and participated in Advanced Mid-Career training jointly organized at IIM Bangalore and Maryland University, USA.
Shri O. P. Yadav was also a member of the 'Group of Officers' constituted by the Central Board of Direct Taxes on 'Revision of guidelines for compounding of offences', 'Systemic requirements of investigation, Intelligence & Criminal Investigation, and central charges' and served as Chairperson of sub-committee constituted by the Director General of Income-tax (Intelligence & Criminal Investigation), New Delhi for revision of handling of information received under automatic exchange of information from the foreign jurisdictions taken part in policy making.