My Startup Solution Lucknow provides an end-to-end transfer pricing solution with a view to ensuring all intercompany transactions are aligned with national and international tax rules. Transfer pricing essentially is the price at which the goods, services, or intellectual property are traded among subsidiaries or divisions under the same corporate group. What would be our goal: Transfer pricing to assist you set prices that would be legally compliant with the "arm's length principle" provided under the Income Tax Act 1961 while minimizing risk and optimizing compliance.
Transfer pricing is a phrase used to describe the value of transactions undertaken between units or entities under common ownership and control, such as the parent company and the subsidiary, both in domestic markets and international markets. For transfer prices, proper appropriate values are required that eliminate profit shifting and facilitate fairness in taxation between countries, and it should represent the price that independent parties might have agreed on a free market, thus holding an "arm's length" standard.
Consider this: Company A in India produces a product and sells it to its related subsidiary, Company B, in another country at a lower price. When Company B sells the product in its market at a high mark-up, profits are shifted from India to the other country and may reduce the taxable income in India. Thus, transfer pricing rules aim at preventing such practices by ensuring that intercompany transactions occur at market equivalent prices.
This act has been designed, under the Income Tax Act, 1961 to safeguard revenue and discourage shifting of profit. My Startup Solution offers its entities the following assistance for compliance with the statutory requirement
We ensure customized solutions for all your compliance needs. In fact, our team navigates the complexities of India transfer pricing efficiently and effectively to meet your needs.
At My Startup Solution, we ensure proper assessment of arm's length prices through various transfer pricing methods. These include the following:
This method is compared to the price of goods or services in a controlled transaction to prices in similar transactions between unrelated entities.
This resale price method begins with a selling price of a product to an unrelated party, then deducting a gross margin in order to arrive at a fair arm's length price for inter-company transactions.
This method is used when semi-finished goods are transferred between companies, and the markup is added to the supplier's costs to determine a fair transaction price.
TNMM measures net profits from inter-company transactions and compares them with independent transactions to ensure that prices are in compliance.
This method allocates combined profits based on terms that unrelated companies would agree to in highly integrated transactions between companies.
Transfer Pricing Services-Committed Quality, My Startup Solution dedicated the best of quality transfer pricing services precisely suited to fulfill the requirements of your firm. We cater to:
Preparation and Filing of transfer pricing documentation: We offer support for transfer pricing preparation and filing. We have made sure our documentation stands by Indian regulatory standards; we are very particular in ensuring the preparation is also complete. Transfer Pricing
Audit and Form 3CEB Support: The team takes you through all the intricacies involved with transfer pricing audit. Ensure that accurate submission is carried out about form 3CEB.
Transfer Pricing Study and Documentation: We do detailed transfer pricing study for ensuring arm's length of all intercompany transactions that supports the compliance for your firm.
Country-by-Country Reporting: For international firms, we provide an enabling environment in preparation for and submission of country-by-country reports that ensure satisfaction of international tax obligations of such firms.
Representation Before Tax Authorities: Our tax professionals represent your case before Transfer Pricing Officer and other concerned higher authorities while defending such cases and litigations as may arise with favorable solutions.
Being one of the reliable service providers of transfer pricing in Lucknow, My Startup Solution has deep knowledge about the local regulations but presents solutions that are both implementable and practical with a global perspective. Our experience means strategic support to CFOs and tax managers who seek information and compliance with all the regulations on transfer pricing.
If you require any service on transfer pricing, simply get in touch with info@mystartupsolution.in. We are all set to help you solve any problem with expert consultancy and effective transfer pricing solutions.
Transfer pricing refers to the pricing of goods, services, and intangible assets transferred between related entities within a corporate group. It is essential because it ensures that inter-company transactions are conducted at arm's length—similar to transactions between unrelated parties. Proper transfer pricing helps prevent profit shifting and tax avoidance, ensuring compliance with local and international tax regulations.
Common methods for determining arm's length prices include the Comparable Uncontrolled Price (CUP) Method, Resale Price Method, Cost-Plus Method, Transactional Net Margin Method (TNMM), and Profit Split Method. The selection of the appropriate method depends on the specific transaction details and market conditions.
Non-compliance can result in significant penalties, tax audits, and the disallowance of expenses, leading to higher tax liabilities. It may also harm your company’s reputation and relationships with stakeholders, increasing scrutiny from tax authorities.
My Startup Solution offers comprehensive transfer pricing services, including preparation of detailed reports, audits, and documentation to ensure compliance with regulations. Our expert team also provides strategic consultation and representation in case of disputes with tax authorities, helping to optimize your tax position.
"Choosing 'My Startup Solution' for my startup's accounting needs was one of the best decisions I made. The team's dedication to accuracy and their personalized approach to my financial situation set them apart. They go above and beyond to ensure I'm well-informed and compliant, allowing me to focus on my business's growth."
"The team at 'My Startup Solution' has been a true partner in my entrepreneurial journey. Their insightful financial guidance and meticulous attention to detail have helped me navigate complex financial matters seamlessly. With their support, I can confidently steer my startup toward success, knowing that my financial matters are in capable hands."
