Beruflich Dokumente
Kultur Dokumente
Regulations
C Transfers to X
Cost to C
SP of X
Tax Rate for C
Tax Rate for X
Impact of TP
S-I
S-2
S-3
S-4
S-5
200
280
300
400
500
100
100
100
100
100
300
300
300
300
300
20%
60%
SP
Cost
PBT
Tax
PAT
SP
Cost
PBT
Tax
PAT
C
200
100
100
20
80
C
400
100
300
60
240
S-1
X
300
200
100
60
40
Total
500
300
200
80
120
S-4
X
300
400
-100
C
280
100
180
36
144
Total
700
500
200
60
240
S-2
X
300
280
20
12
8
Total
580
380
200
48
152
C
500
100
400
80
320
C
300
100
200
40
160
S-5
X
300
500
-200
S-3
X
300
300
0
0
0
Total
600
400
200
40
160
Total
800
600
200
80
320
Transactions
Internal
External
Inter Company
Revenue Profit
Capital Gain
Royalty
Intra Company
Inter Comapny
Control System
Non-Related:
cost centres
Profit/Dividend/Royalty
revenue centres
Forex Fluctuations
profit/Investment centre
Accounting
Related
Profit/Dividend/Royalty
Transfer Pricing
Forex/Accounting
Intra Company
Control Systems
Forex Fluctuations
Accounting
Transfer Pricing
Accounting Standard
Income Tax
Custom Duty
Currency Fluctuations
Risk of Expropriation
India
The Finance Act 2001
introduced the detailed
TPR w.e.f. 1st April
2001
The Income Tax Act
AS-18
Other Relevant Acts
Accounting Standard 18
Requires disclosure of any elements of the
related party transactions necessary for an
understanding of the financial statements.
Related Parties
Control by ownership
50% of the voting right
(ALP).
ALP provisions can be applied if it
leads to decrease in taxable income or
increase in losses.
Exchanging property
Selling of real estate at
a price different from
MP
Use of trade names or
patents at exorbitant
rates even after their
expiry.
Some Cases
Kinetic Honda Motors
Collaborator: Honda Motor Co. Ltd Japan and
their Subsidiary Honda Trading Corpn. Japan
Some Cases
Peico Electronics & Electricals Ltd.
Parent: Phillips Netherlands and its subsidiaries
Videocon Group
Collaborators: Toshiba Co., Mitsubishi Co
ROS
Computers 4%
Software 10%
Books 4%
Overall 6.1%
2%
10%
5%
5.1%
Sales/Asset
ROI
4
4 16% 8%
2
2 15% 20%
3
2 10% 10%
2.4 2.6 14.40% 13.51%