The complicated transfer price process is a challenge that the professionals at J J J and Company LLP embrace. Determining the nature, treatment, and taxability of intra-group transactions across various geographies is the main goal of transfer pricing. The transaction is put to the test by determining the transaction’s arm’s length price in accordance with the recommended transfer pricing methodology.
Every multinational corporation’s transfer pricing practises are crucial to how distributable profits are taxed globally. A company that conducts business internationally is legally required to be just and fair by contributing the appropriate portion of its global profits for taxation. After all, it is permissible for every nation to tax a portion of the world’s profits. Several international accords and conventions have reaffirmed this principle. The Organization for Economic Co-operation and Development (OECD), which just released Base Erosion and Profit Shifting (BEPS) Action Plans, has achieved widespread acceptance.
We provide the following services:
- Transfer Pricing Advisory and Transaction Structuring;
- Transfer Pricing Risk Assessment; Benchmarking Studies;
- Transfer Pricing Studies;
- Transfer Pricing Compliances;
- Transfer Pricing Planning (Safe Harbour and Advanced Pricing Agreements);
- Transfer Pricing Litigation and Representation; and
- Transfer Pricing Dispute Resolution and Appeal.
Transfer Pricing Advisory and Transaction Structuring
Our specialist team has the tools necessary to conduct a thorough study of the transaction and its implications for related laws and regulations. We are also skilled at creating solutions and guiding clients in resolving complicated transfer pricing transactions and valuations. Our advice and suggestions are supported by in-depth research, value addition, quality, and compatibility with corporate objectives. Industry analysis, competitor analysis, revenue recognition criteria, billing and payment methodology, costing and internal comparable methodological approach, alignment to global transfer pricing principles, margin analysis, etc. are some of our areas of expertise in transfer pricing advisory. Transaction structure entails delving deeply into the details of a number of issues. We help our clients structure and evaluate transactions in accordance with transfer pricing methodology. Analysis of the transaction’s nature, treatment, and taxability under domestic and international tax laws, the creation and maintenance of necessary documentation, post-transaction structuring compliances, etc. are all part of the transaction structuring process. Transfer price advising and transaction structuring are two of the specialised services that JJJ offers to clients, and we have had success working with both local and foreign clients to meet their demands.
Transfer Pricing Risk Assessment
Transfer pricing risk assessment comprises evaluating current transactions and organisational structures, as well as summarising potential risks connected to the current model, its shortcomings, and implementation strategies to address those shortcomings. This procedure include evaluating recommendations and conducting critical analysis from a market risk perspective. Because JJJ has qualified and experienced specialists on staff, we have partnered with a number of clients to conduct risk assessments and identify potential non-compliances and hazards.
In order to comprehend and assess the arm’s length margins for the purposes of executing transactions and complying with transfer pricing regulations, benchmarking studies are carried out before the transaction is initiated. Benchmarking studies offer direction and useful insights into the advantages and disadvantages that can be associated with a specific transaction. Clients can analyse potential risks and reduce the likelihood of any tax issues and contingencies by using benchmarking studies that have been prepared and are supported by good technical viewpoints and available jurisprudence.
Transfer Pricing Studies
The study of the business and transactions, the FAR analysis (Functions performed, Assets employed, and Risks assumed) of the business and the competitors, and benchmarking the results with industry data are all included in transfer pricing studies. The methodology used is chosen with consideration for the particular facts and circumstances of the transaction. The procedure entails thorough investigation of data relevant to comparable businesses, their transactions, and parallels between their FAR profiles and the business’s. As a consequence of the investigation, eligible comparable companies would be shortlisted and chosen. We help with a variety of issues of transfer price documentation creation and upkeep.
Transfer Pricing Compliances
According to the guidelines of the Indian tax regulations, transfer pricing compliances involve information gathering, analysis, and periodic reporting of various facts and circumstances to the tax authorities. Additionally, certain compliances might also be required in order to meet criteria established by international transfer pricing rules.
Our compliance programmes at J J J and Company LLP have been designed to assist the seamless operation of the entire transfer pricing compliance process.
Transfer Pricing Planning
Legislation that was the subject of debate has given way to a planned and certainty-focused environment for global transfer pricing. Governments have shown improved knowledge, acceptance, and dedication in their efforts to resolve possible transfer pricing concerns since the implementation of BEPS and other OECD measures. The introduction of Advanced Pricing Agreements (APA) and Safe Harbour (SH) has revolutionised the transfer pricing industry.
In-depth procedures related to application preparation, documentation, conversations with the tax authorities, and post-agreement compliances are required for the APA and SH. The type of transaction and the sector that the business operates in are used to assess eligibility. We closely coordinate the entire procedure in collaboration with top-tier expert tax and legal professionals from our network businesses who are knowledgeable in the subject. In accordance with our dedication to providing top-notch customer service, our association aims to contribute subject-specific expertise to the advantage of the clientele.
Transfer Pricing Litigation and Representation
The Indian tax laws’ transfer pricing provisions have been changing over time, and various new innovations have surfaced. There is a rise in transfer pricing disputes as the laws governing transfer pricing in India develop and new subtleties are discovered.
We have a specialized team of trained specialists from the business who are legal and tax experts who assist in representing clients before the tax authorities. The team assists clients with data collection, data analysis, and communications with the tax authorities. We have been able to successfully defend various clienteles before the lower-level tax authorities without any further tax demands thanks to our special blend of hand-selected talent.
Transfer Pricing Controversy Resolution and Appeals
The resolution of TP disputes entails difficult issues and issues that are still awaiting decision at the appellate stages. To lessen the ongoing impact of a contentious issue underlying an ongoing tax case, any unresolved transfer pricing problem must be resolved. The size of the amount trapped in litigation is enormous and could result in further litigation.
We have a specialised team of trained specialists from the business who are legal and tax experts who assist in representing clients before the appellate authorities. We have been able to effectively defend a number of pending transfer pricing controversies at the appellate levels because to our special combination of hand-selected experts.
With regard to international transfer pricing, transaction structure, and transfer pricing compliances, JJJ and Company LLP has extensive experience. We are able to illustrate and explain the ideal fusion of a global viewpoint and insights with the Indian transfer pricing laws and the actual methodology used by the Indian transfer pricing authorities. We have worked with clients to implement complicated transactions, create appropriate transfer pricing regulations, and structure transactions to achieve worldwide tax optimization.