By Amrit Dhillon
A circular issued by India's Central Board of Direct Taxes in New Delhi said that only international transactions worth more than 150 million rupees ($2.3 million) will come in for compulsory transfer pricing scrutiny.
Tax specialists told Bloomberg BNA that the earlier ceiling of 50 million rupees ($760,000) had already been revised to 150 million rupees in the CBDT's internal guidelines for tax officers. The circular serves to make the higher figure public and official.
The circular (No. 10/2013), dated Aug. 5, also said the higher ceiling applies to cases:
Other tax experts said the increase in the limit for a mandatory assessment on transfer pricing will provide relief to many taxpayers and reduce the costs of doing business in India.
“It's particularly good news for small and medium taxpayers as this will mitigate their exposure to stiff transfer pricing assessments,” said Amit Singhania of the law firm Amarchand Mangaldas in New Delhi.
Text of the circular is at http://www.itatonline.org/info/index.php/cbdt-criteria-for-selection-of-scrutiny-cases-in-fy-2013-14/.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).