Transfer Pricing Advisory

In today’s global business environment, companies often transact with their subsidiaries, associates, or group companies across borders. These transactions must comply with Indian Transfer Pricing regulations and international guidelines to avoid tax disputes and penalties.

At NEXGENCA, we provide end-to-end Transfer Pricing Advisory Services to help you stay compliant while optimizing tax efficiency.

What is Transfer Pricing?

Transfer Pricing refers to the pricing of goods, services, or funds exchanged between related entities, such as:

• Parent company & subsidiary

• Joint ventures

• Associated enterprises across different tax jurisdictions

Since these are not independent market transactions, governments closely monitor them to ensure they are carried out at Arm’s Length Price (ALP) (fair market value).

Transfer Pricing Services by NEXGENCA

1. Transfer Pricing Policy & Structuring

   • Designing group-wide pricing policies

   • Aligning tax strategy with OECD guidelines & Indian Income Tax Act (Sec 92–92F)

   • Structuring cross-border transactions to minimize tax risk

2. Transfer Pricing Documentation & Reporting

   • Preparation of local files, master files, and country-by-country reports (CbCR)

   • Maintenance of Form 3CEB (mandatory under Indian law)

   • Benchmarking studies to justify Arm’s Length Pricing

3. Benchmarking Analysis

   • Identifying comparable companies/transactions

   • Using methods like CUP, RPM, CPM, TNMM, Profit Split Method

   • Ensuring compliance with Rule 10B & OECD guidelines

4. Advance Pricing Agreements (APA)

   • Negotiating unilateral, bilateral, and multilateral APAs with tax authorities

   • Reducing litigation by fixing pricing methodology in advance

5. Transfer Pricing Litigation & Dispute Resolution

   • Assistance during Transfer Pricing audits & assessments

   • Representation before Assessing Officer, DRP, ITAT, and higher courts

   • Assistance with MAP (Mutual Agreement Procedure) between countries

6. Intra-Group Services & Intangibles

   • Advisory on royalty payments, technical services, management fees

   • Valuation of intangibles such as patents, trademarks, and brand value

   • Ensuring transactions comply with both Indian law and global practices

7. Compliance for Multinational Companies (MNCs)

   • Advisory for inbound (foreign companies in India) and outbound (Indian MNCs abroad) operations

   • Country-by-country reporting (CbCR) compliance for groups with consolidated revenues above threshold

Transfer Pricing Compliance Deadlines in India

• Form 3CEB Filing – By 31st October of every year (for companies entering into international or specified domestic transactions)

• Transfer Pricing Documentation – Must be maintained before the due date of filing the return

• Country-by-Country Reporting (CbCR) – By the parent company/alternate reporting entity, usually due by 12 months from financial year-end

Penalties for Non-Compliance

• Failure to maintain documentation – 2% of transaction value

• Non-filing of Form 3CEB – ₹1,00,000 penalty

• Incorrect information – ₹50,000 penalty

• CbCR non-compliance – ₹5,000–₹50,000 per day depending on delay

Documents Required

• Group structure & ownership details

• Nature of international transactions

• Intercompany agreements/contracts

• Financial statements of group entities

• Invoices & payment details

• Benchmarking/comparables data

Benefits of NEXGENCA’s Transfer Pricing Advisory

• Tax risk mitigation – avoid disputes & penalties

• Compliance assurance with Indian & OECD rules

• Customized benchmarking for your industry

• Reduced litigation via APAs & MAPs

• Global expertise for multinational operations

Why Choose NEXGENCA?

• Comprehensive advisory – from structuring to compliance

• Strong litigation support – experienced in tax disputes

• Global approach – expertise in OECD and BEPS framework

• On-time compliance – avoid penalties & interest

• Trusted partner for startups, SMEs, and MNCs