India Moving Towards Global Practices In TP

With the intention of aligning transfer pricing regulations in India with international practices and reducing litigations on some repetitive issues considerably, India’s Finance Minister, Arun Jaitley, in his Budget speech of July 2014, had announced the introduction of the ‘range concept’ for determining the arm's length price (ALP) and allowing the use of multiple year data for comparability analysis.Subsequently, in May 2015, the Central Board of Direct Taxes (CBDT) released draft rules of the proposed application of range concept and use of multiple year data for computation of ALP, for public comments.The CBDT issued the much awaited Notification on the above aspects on 19 October 2015. This SKP Group Alert details the changes.

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