What is a transfer price? Things You Need to Know.
The setting of a price for services and goods between related legal entities is referred to as a transfer price. With Greenvissage, each and every business can de-risk transfer pricing matters with effective documentation, filing audit report, litigation support and all other aspects.
Transfer pricing refers to the pricing of international transactions between two associated enterprises. Due to the special relationship between related parties, the transfer price may be different than the price that would have been agreed between unrelated parties.
Developed countries have strict rules for transfer pricing and India has also joined this by having its own set of stringent transfer pricing regulations. Multinational companies look to ensure that their global policies of transfer pricing are in line with the arm’s length principles. Also, that they are justifiable to the tax authorities in order to close any investigations regarding pricing of the cross border inter-company transactions. Since the impact is significant on tax collections, governments are looking at every opportunity and are aggressive to get their fair share of taxes. The tax scrutiny numbers are on an increase worldwide.
The tax rules related to transfer pricing are complex and in addition to that governments are proactive in analyzing transfer pricing tax policies and practices. The penalties for running afoul of transfer pricing rules can be significant for every company. Our highly-experienced transfer pricing professionals offer a comprehensive solution in each and every area of transfer pricing which includes documentation, transfer pricing assessments, CBCR support, and other value-added services.
Quality Assured Transfer price services we offer
Our transfer pricing professionals have technical expertise and knowledge to assist in all the aspects of transfer pricing matters for clients across a broad range of industries. Our Transfer pricing services include: