TaxSalahkars
Schedule a call
Service

Transfer Pricing, defensible.

Every cross-border related-party transaction is one TPO notice away from a multi-crore adjustment. We build benchmarking studies and TP documentation that hold up under scrutiny — and represent you when they don't.

Book a consultation Read FAQs
?Quick Answer

Does my Indian subsidiary need transfer pricing documentation?

Yes — any transaction with a foreign parent, sister concern, or associated enterprise (sales, services, royalty, loan, cost-share, IP) requires Form 3CEB, a benchmarking study, and contemporaneous documentation. There is no de-minimis threshold. We handle the entire compliance and defence cycle.

Form 3CEB due
31 Oct
Penalty Risk
Up to 200%
APA Term
5 + 4 yrs
Key Facts at a Glance
Governing lawSec 92 – 92F, Income-tax Act
Form 3CEB due31 October
Master File thresholdGroup revenue > ₹500 cr
CbCR thresholdGroup revenue > ₹6,400 cr
TP methodsCUP, RPM, CPM, PSM, TNMM
Documentation penalty2% of transaction value
What we handle

Benchmarked. Documented. Defended.

We treat transfer pricing as a litigation discipline, not a compliance checkbox. Every margin we file is supported by a comparable set we are willing to defend before the TPO, DRP, and ITAT.

USAUKGermanySingaporeUAENetherlands
01
Functional & Risk Analysis (FAR)

Map functions performed, assets employed, and risks borne by each associated enterprise. This determines characterisation and the right TP method.

02
Method Selection & Benchmarking

Database search (Prowess, Capitaline, RoyaltyStat) to identify comparables. Quantitative and qualitative screening to arrive at the arm's length range.

03
TP Documentation (Local File)

Contemporaneous documentation per Rule 10D — industry analysis, entity overview, controlled transactions, FAR, economic analysis. Maintained for 8 years.

04
Form 3CEB Certification

Independent CA report covering every international transaction and SDT. Filed by 31 October each year. We sign and defend what we file.

05
Master File & CbCR

Form 3CEAA (Master File) and 3CEAD (CbCR) for qualifying multinational groups. Coordination with global parent for consistent positioning.

06
APA / Safe Harbour / TPO Defence

Where audit exposure is high, we file Advance Pricing Agreements or Safe Harbour applications. When the TPO has already issued a notice, we lead the defence to DRP and ITAT.

Compliance Calendar

Key checkpoints. Miss none.

Statutory · India
30 SepAnnual
Tax audit (Form 3CD) and books finalisation with TP disclosures
31 OctAnnual
Form 3CEB and Master File (Form 3CEAA) filing
30 NovAnnual
ITR-6 filing with TP disclosures for corporate taxpayers
31 MarMNE Group
CbCR (Form 3CEAD) and notification (Form 3CEAC) deadline
OngoingContemporaneous
Inter-company agreements & invoice trail to evidence pricing
What to keep ready

Documents we'll ask for.

A clean document set cuts our turnaround in half. Send what you have — we'll request the rest in a single consolidated checklist.

Group org chart & shareholding
Including ultimate parent and all associated enterprises.
Inter-company agreements
Services, royalty, cost-share, loan, distribution agreements.
Audited financials — 3 years
Indian entity and global consolidated statements.
Segmental P&L
By controlled vs uncontrolled transactions, where available.
FAR questionnaire responses
We provide a 12-page template covering all entities.
Transaction ledger
Invoice-level details for every related-party flow during the year.
Prior year TP reports
Last 3 years of Form 3CEB and benchmarking studies, if any.
TPO / DRP correspondence
Any open notices, draft assessment orders, or appeal filings.

One TP notice can cost crores.

Get a 30-minute risk review of your existing documentation. We will tell you exactly where the exposure sits — and what to fix before the next 3CEB filing.

Schedule a call
Frequently Asked Questions

Answered by CAs.

What is transfer pricing and who does it apply to?+
Transfer pricing rules (Sections 92 to 92F of the Income-tax Act) govern the price at which related Indian and foreign entities transact — goods, services, royalties, IP licensing, intra-group loans, cost-sharing arrangements. Any Indian entity transacting with an associated enterprise abroad must comply, regardless of transaction size.
Who must file Form 3CEB?+
Every taxpayer with international transactions or specified domestic transactions with associated enterprises must file Form 3CEB — a CA-certified report — by 31 October of the assessment year. There is no monetary threshold; even a single ₹1 transaction triggers the filing.
What is the arm's length principle?+
The arm's length principle requires that prices between related parties match what unrelated parties would have charged in similar circumstances. The Income-tax Act prescribes five methods — CUP, RPM, CPM, PSM, and TNMM — and the most appropriate must be selected and documented.
What is Master File and CbCR?+
Master File (Form 3CEAA) is required if the Indian entity's consolidated group revenue exceeds ₹500 crore and aggregate international transactions exceed ₹50 crore. Country-by-Country Reporting (Form 3CEAD) applies to multinational groups with consolidated revenue above ₹6,400 crore.
What are the penalties for non-compliance?+
Failure to maintain documentation: 2% of transaction value. Failure to file Form 3CEB: ₹1 lakh. Failure to report international transactions: 2% of transaction value. Adjustments by the TPO can also trigger interest, penalty up to 200% of tax, and prosecution.
What is an Advance Pricing Agreement (APA)?+
An APA is a binding agreement with the CBDT that pre-determines the arm's length price for international transactions for up to 5 future years (plus 4 rollback years). It eliminates TP disputes. We assist with unilateral, bilateral, and multilateral APAs end-to-end.
What is Safe Harbour and should I opt in?+
Safe Harbour Rules let eligible taxpayers (IT/ITeS, KPO, R&D, auto components, contract manufacturing, intra-group loans) pre-declare margins that the tax department will accept without scrutiny. We evaluate eligibility and file Form 3CEFA where it gives a better outcome than litigation risk.
Can transfer pricing be applied to domestic transactions?+
Yes — Specified Domestic Transactions (SDT) above ₹20 crore between related Indian entities (e.g. tax holiday units, SEZ units) require TP documentation and Form 3CEB filing. Most other domestic transactions are now outside the SDT net post-2017 amendments.
How long is the TP assessment cycle?+
Reference to the Transfer Pricing Officer (TPO) happens within 33 months of the end of the assessment year. TPO has up to 60 days before the regular assessment deadline to pass an order. Total cycle: 36–42 months from year-end. We represent through every stage including DRP and ITAT.
Related Services

Often combined with this service

India Subsidiary Setup

Structuring the Indian entity to minimise future TP exposure.

Learn more →
GST for Foreign Cos.

Indirect tax compliance for the same related-party flows.

Learn more →
DTAA Advisory

Treaty positions that defend cross-border margins and royalties.

Learn more →
💬