Secondary Adjustments and Business Restructuring TP India: Section 92CE Under the 2025 Act and the New Section 163 Framework
Secondary Adjustments Transfer Pricing in Bangalore | Section 92CE business restructuring TP India An Indian R&D centre’s TP audit concludes with a primary adjustment of INR 25 crore, lifting the cost-plus margin from 12% to 13.5%. The company accepts the adjustment, pays the additional tax, and considers the matter closed. Eighteen months later, the assessing […]
Intra-Group Financial Transactions India: Transfer Pricing for Loans, Guarantees and Cash Pooling
Intra-Group Financial Transactions India Bangalore| Transfer Pricing Intra-Group Loan Guarantee India An Indian operating company takes a USD 50 million loan from its US parent at 4.5% to fund expansion. The TPO benchmarks the rate against comparable third-party borrowings by similarly-rated Indian corporates, concludes the arm’s length rate is 6.2%, and proposes an adjustment treating […]
Pillar Two and India: The Global Minimum Tax Exposure for In-Scope Groups and Indian Subsidiaries
Global Minimum Tax QDMTT IIR Law India Bangalore | Pillar Two India An Indian-headquartered IT services group with consolidated global revenue of EUR 1.2 billion has been comfortable with its low effective tax rate. The Indian parent benefits from concessional tax regimes (Section 115BAA at 22%) and SEZ tax holidays for its export-oriented units. The […]
Significant Economic Presence India: How Section 9(8)(d) Catches Digital Businesses Without a Single Office
Significant Economic Presence Law Bangalore | SEP digital tax Section 9 in India A US-based SaaS company sells subscription software to Indian businesses. No Indian office, no employees in India, no permanent establishment under the India-US treaty. Revenue from Indian customers crosses INR 50 crore in a year and the user base on the platform […]
Permanent Establishment Risk India: When a Foreign Company Starts Paying Tax Without Knowing
Permanent Establishment Lawyer in India | Service PE Agency PE India A Singapore-based consulting firm sends two senior partners to India for six weeks over twelve months to work on a strategic engagement with an Indian conglomerate. The partners stay in serviced apartments, work from the client’s office and a local co-working space, and bill […]
DTAA Benefits in India: TRC, Form 10F, MLI and the Principal Purpose Test
DTAA benefits in India | TRC Form 10F MLI principal purpose test India A US private equity fund sells its stake in an Indian portfolio company. Long-term capital gains tax in India would be substantial. The fund’s holding entity is in Mauritius, structured to access the India-Mauritius DTAA’s capital gains exemption for shares acquired before […]
Mutual Agreement Procedure Law in Bangalore: Using MAP to Resolve Cross Border Double Taxation
Mutual Agreement Procedure Law in Bangalore | MAP DTAA double taxation India A US technology company’s Indian subsidiary is hit with a TP adjustment of INR 60 crore. The Indian tax authority’s position is that the US parent paid the Indian subsidiary too little for software development services. The US parent has already paid US […]
Intercompany Agreements Law in Bangalore: Cost-Plus, Profit-Split, and Cost Contribution Models That Hold Up
Intercompany Agreements Law in Bangalore | Cost Plus Profit Split Intercompany India An Indian R&D centre and its Belgian parent operated for years on a cost-plus 8% markup documented in a one-page service agreement. When the company’s revenue mix shifted to include high-end algorithm development for which the parent monetised a successful product, the TPO […]
Transfer Pricing Audit in Bangalore: From TPO Reference Through DRP, ITAT and the 60-Day Codification
Transfer Pricing Audit in Bangalore | TPO DRP ITAT transfer pricing dispute Bangalore A Pune-based contract manufacturer for a German automotive parent files Form 3CEB on time, with full benchmarking. The assessing officer refers the case to the TPO. Fifteen months later, the TPO issues a draft order proposing an adjustment of INR 47 crore […]
Safe Harbour Rules India: What Budget 2026 Changed for IT Services, Data Centres, and the Automated Regime
Safe Harbour Rules in India | Transfer Pricing Safe Harbour Budget 2026 IT services A Bangalore software development centre serving its US parent has been claiming a cost-plus margin of 17% under safe harbour for years. The eligibility threshold capped at INR 200 crore meant the company exited safe harbour the moment its revenue crossed […]