Transfer Pricing Study

We, as a technology support service company offer services to IT, ITES companies in the areas of outsourcing, Due Diligence and valuations including Transfer Pricing study.

Transfer Pricing (TP) refers to the value attached to cross-border transfers of goods, services and technology between related entities. The typical international transactions covered under TP are sale or purchase of products and services, reimbursement of expenses, support services, royalty fee, etc.

When transactions take place between the related parties (or associated enterprises), how to ascertain that a fair price is charged for them? It may so happen that the transactions are recorded at cost price!

The price that is applied on related party transactions should be at arms’ length price. An arms’ length transaction involves two unrelated or independent parties and each is attempting to get the best deal possible!

So, to fix fair price for related party transactions, one has to conduct a study to ascertain the price which would have been charged if such transaction had taken place between independent parties.

The process of conducting such a study is referred as Transfer Pricing Study.

We along with our associate partners have specialized in TP Study of IT and ITES, Technology companies in Bangalore.

Bangalore is the hub of Indian subsidiaries of foreign IT companies.  Irrespective of the turnover, all such subsidiaries have to comply with the TP regulations under Income Tax Act.

This has given us an opportunity to specialize in TP studies of Technology companies. We have domain and subject experts coupled with technology tools to ascertain the most appropriate method and pricing of international IT and IT related transactions.

In case you wish to know more about TP services, please feel free to reach me on [email protected]