Rules to rein the disputes on Transfer Pricing
Posted on: 19/Sep/2013 3:15:59 PM
In order to reduce the disputes that arise due to the transfer pricing, safe harbor rules and relaxing norms are being notified by the Finance Minister this Wednesday.
These notifications are expected to benefit the companies for the long term. By these safe harbor rules, the tax department may accept a transfer price that is provided by assesse and that become applicable for next 5 assessment years.
The companies are also allowed to take refuge under norms during this period. To make the norms flexible, the government also removed the ceiling for transaction which was, Rs. 100 crore and this helps in getting the companies safe harbor benefits.
