Transfer pricing is a mechanism adopted by multinational enterprises (MNEs) for valuing the goods and services traded with their subsidiaries or associate companies situated in different tax jurisdictions. When goods, intangibles and services are transferred across borders within the MNEs, transfer pricing becomes an important issue for both the MNEs as well as for the Income Tax and Customs Authorities.
Transfer pricing regulations are applicable to all enterprises that enter into an international transaction with an associated enterprise. The aim is to arrive at the comparable price as available to any unrelated party in open market conditions and is known as the Arm’s Length Price.
The transfer pricing procedure can be exhausting and requires a lot of legal, technical, and economic knowledge, which our team at RNC
offers to our clients.