Transfer Pricing Defense Services

Transfer Pricing Defense

In Transfer Pricing, the defense mechanism from the Taxpayer’s perspective is an essential element where the Tax Authorities calls for Transfer Pricing Documentation where an Arm’s Length nature of transaction needs to be proven. Such a defense mechanism could be proactive or reactive.

A proactive mechanism includes matters like entering into the ‘Advance Pricing Agreements’ (APA) with the Tax Authorities (Government) for upfront determination of Transfer Pricing for future and ‘Safe Harbour’ regimes where the Taxpayer is expected to maintain minimum profitability as suggested by the Government. It is possible to enter into an Advance Pricing Agreement for the purpose of determination of Transfer Pricing in India for a period of 9 consecutive years out of which 5 years are forward looking and a roll back provision for past 4 years is also included.

A reactive Transfer Pricing defense mechanism includes representation before the Transfer Pricing Authorities including detailed submissions on the Transfer Pricing positions and policies. Further it also includes instigation resolution before the Dispute Resolution Panel, Commissioner (Appeals), Tax tribunals, Facilitation at High courts and Supreme Court.

Our solution in the Transfer Pricing dispute resolution include:

Transfer Pricing Representation along with Strategy Formation
Advance Pricing Agreements
Safe Harbour Representations
Transfer Pricing Litigation Strategy Formation
Representations at Dispute Resolution Panel along with other appeal levels
Facilitations for High Courts and Supreme Court
Transfer Pricing File Built-up to be ready for Transfer Pricing Assessment
Analysis of Transfer Pricing Risk Profiling

We understand the complexities and challenges involved in transfer pricing and tax disputes. Our expert team of dispute resolution specialists is here to help you navigate through any conflicts that may arise. With our comprehensive understanding of international transfer pricing regulations and our proven track record of successfully resolving disputes, we are dedicated to providing you with the best possible outcome. Trust us to handle your transfer pricing disputes with professionalism, expertise, and utmost confidentiality.

Transfer Pricing Representation Along With Strategy Formation

We assist in representing your case before the transfer pricing authorities in India. Our approach involves strategically analyzing your transfer pricing case to identify and address potential risk areas in advance. This proactive strategy ensures a robust representation. Our expertise and specialist experience allow us to conduct thorough analyses, providing the best possible outcome for your case.

Advance Pricing Agreements (APA)

An Advance Pricing Agreement (APA) is a proactive strategy to reduce future litigation for multinational companies. It involves an agreement with the Central Government to declare and fix transfer pricing mechanisms. This agreement provides clarity on transfer pricing for up to nine years, covering the agreement period and applicable rollback years. We assist multinationals with the entire APA process, from application to finalization, ensuring smooth interactions with the government.

Safe Harbour Representations

Once the taxpayer opts for the safe harbour regulations, the tax authorities through its transfer pricing officers may like to understand whether the application is a valid application or shall be rejected. We assist companies with representations before the transfer pricing authorities to explain the positions undertaken by the clients and accordingly justify the option of safe harbour.

Representations At Income-tax Tribunals

We assist our clients with strategizing, drafting and active representations at the tax tribunal level. Tax tribunals are an important level in tax litigation, as it is the final fact-finding authority. It is essential that all facts are well placed before this level and argued accordingly. We work with a panel of litigation experts along with in-house experts at TransPrice.

Transfer Pricing Litigation Strategy Formation

Clients may have their internal litigation experts and litigators on their board. They often reach out to us for a formal strategy build up around transfer pricing litigation strategy and take prior approvals of their strategy from the firm.

Representations At Dispute Resolution Panel Along With Other Appeal Levels

DRP is the 1st level appellate authority for transfer pricing matters. We assist our clients with preparation for the appeal, application for the appeal as well as representations for the appeal.

Facilitations For High Courts And Supreme Court

We assist clients with high-level appeals by studying their cases, strategizing effectively, and briefing counsel for representation in the High Court and Supreme Court. Our comprehensive support ensures meticulous preparation and possible outcome.

Analysis Of Transfer Pricing Risk Profiling

We undertake detailed review of the documentation undertaken by the taxpayer in the past and understand the risk involved in the model and the documentation. We suggest the corrective action for bringing the transfer pricing in alignment for past and for future.