Transfer Pricing Advisory Services in Ahmedabad

#1  Transfer Pricing Advisory Services in Ahmedabad, Gujarat

Pricing is generally defined as the value which is attached to the goods or services transferred between related parties.
But transfer pricing is different. Transfer pricing is the price which is paid for goods or services transferred from one unit of an organization to its other units situated in different countriesor in same country. There are many organisations that provide transfer pricing services in Ahmedabad.

Which transactions are subject to transfer pricing?

Best Transfer Pricing Firm in Gujarat - The following are some of the transactions which are majorly governed by the transfer pricing rules and regulations.
Transfer Pricing Consultancy of Multinational organizations is operating in an environment of unprecedented complexity. The rising volume and variety of intercompany transactions and transfer pricing regulations, accompanied by increased enforcement activities worldwide have made transfer pricing a leading risk management issue for global businesses. The goal of our transfer pricing network is to help companies manage risks by aligning practical transfer pricing solutions with their overall global business operations and objectives, assist with strategic documentation to support their transfer pricing practices, and resolve disputes efficiently. we have a well-earned reputation for quality and delivering results.

  1. Sale of finished goods.
  2. Purchase of raw material.
  3. Purchase of fixed assets.
  4. Sale or purchase of machinery etc.
  5. Sale or purchase of Intangibles.
  6. Reimbursement of expenses paid/received;
  7. IT Enabled services.
  8. Support services.
  9. Software Development services.
  10. Technical Service fees.
  11. Management fees.
  12. Royalty fee.
  13. Corporate Guarantee fees.
  14. Loan received or paid.

These are some of the example of transactions which requires Transfer Pricing. In some cases it can be more than this. It generally depends on the organisation. But rest assured – All the formalities is been taken care by best transfer pricing firm in Gujarat depending on the needs and requirements of the organisation.

What are the objectives of Transfer Pricing?

The key objectives of having transfer pricing are as follows:

  • To generate separate profit for each of the divisions and enabling performance evaluation of each division separately.Purchase of raw material.
  • Transfer prices would affect not only the reported profits of every centre, but it would also affect the allocation of a company's resources. Thus Transfer Pricing helps in proper allocation of resources.Here cost incurred by one centre will be considered as the resources utilized by them

To fulfil the above objectives you need best transfer pricing advisory.

Why Big Organizations need to understand Transfer Pricing?

For the purpose of management accounting and reporting, multinational companies (MNCs) have some amount of discretion while defining on how to distribute the profits and expenses to the subsidiaries located in various countries or places. Many a times subsidiary of a company might be divided into segments or might be accounted for as a standalone business, In these cases, transfer pricing helps in allocating revenue and expenses to such subsidiaries in the correct manner.Transfer pricing firms can help in such allocations.

The profitability of a subsidiary actually depends on prices at which the inter-company transactions occur. These prices can be determined by Transfer pricing advisor. Moreover these days the inter-company transactions are facing increased scrutiny by the governments. This is because, when transfer pricing is applied, it could impact shareholders wealth as this influences company’s taxable income and its after-tax, free cash flow.

Thus it is important that a business having cross-border intercompany transactions should understand transfer pricing concept, particularly for the compliance requirements as per law and to eliminate the risks of non-compliance. To make all these things possible you need to hire best Transfer pricing consultant.

What are Transfer Pricing Methodologies?

The OECD (The Organisation for Economic Co-operation and Development) Guidelines discusses the transfer pricing methods which could be used for examining and determining the arms-length price of the controlled transactions. Arms-length price majorly refers to the price which is applied or proposed or charged when unrelated parties enter into similar transactions in an uncontrolled condition.

The following are three of the most commonly used and applied transfer pricing methodologies:

  1. The first method iscomparable and controlled price method.
  2. The second method is resale price method.
  3. The third method is cost plus method.

If you don't want to get into the intricacies of this methods contact Dhiren Shah & company, best Transfer pricing company which has a vast experience of making Transfer pricing possible for various organizations.

Transfer Pricing Advisory Services in Ahmedabad | Transfer pricing services in Ahmedabad | Best transfer pricing firm in Gujarat