Insights on draft Safe Harbour Rules
Audio Webcast | Duration: 90 minutes
4 September 2013 at 2.30pm - 4:00pm (IST)
Applying the arm's length principle can be a resource intensive process. It may impose a heavy administrative burden on taxpayers and tax administrations that can be exacerbated by both complex rules and resulting compliance demands. These facts may lead to consideration of whether and when safe harbour rules would be appropriate in the transfer pricing area. Some of the difficulties that arise in applying the arm's length principle may be avoided by providing circumstances in which eligible taxpayers may elect to follow a simple set of prescribed transfer pricing rules in connection with clearly and carefully defined transactions. It is in this context the Indian tax law was amended in 2009 to empower the Central Board of Direct Taxes (CBDT), the apex Indian Tax Administration, to notify transfer pricing "safe harbour" rules. The CBDT on 14 August 2013 released draft safe harbour rules for public comments. A number of taxpayers in India find themselves in the challenging position of documenting and defending their transfer pricing issues as controversy is on the rise due to increasingly well-staffed tax authorities applying more sophisticated and sweeping transfer pricing tools. Specifically targeted safe harbour rules can provide certainty that the taxpayer's transfer prices will be accepted, provided they have met the eligibility conditions of, and complied with, the safe harbour provisions.
Join us for the 60 mins. webcast where our panel of Transfer Pricing partners will address what the draft rules mean for taxpayers, under what circumstances taxpayers may consider opting for safe harbours and what impact the draft rules could have on the evolving transfer pricing landscape in India.
Partner, International Tax Services and Tax Knowledge & Solutions Group
Rajendra Nayak is a Partner with the Knowledge & Solutions Group. He is a Member of ICAI and holds a Masters degree in International Taxation from the Regent University School of Law, USA.
Rajen has been rated by Euromoney's International Tax Review Magazine among the 'Top Tax Dispute Resolution Lawyers and Advisors in India’ for the year 2012.
A noted international tax thought leader, Rajen has over 16 years of experience in tax consulting. He has considerable experience in advising companies on cross-border transactions, transfer pricing planning, documentation & controversy management and assisting companies in international tax planning. He has worked with a number of leading Indian and multi-national companies in the information technology and manufacturing sector.
Rajen is a regular speaker at conferences and has contributed several articles on international taxation. He is the co-author of the Indian chapter of IBFD’s book on Transfer Pricing Controversy and Dispute Resolution.
Partner & National Leader - Transfer Pricing
Vijay Iyer is a tax partner and National Transfer Pricing leader for the International Tax Services practice in Northern India. Vijay has been rated as one of the World’s Leading Transfer Pricing Advisors for India by the Legal Media Group in their annual global guide as well as by International Tax Review. With an experience spanning to nearly two decades, Vijay has been advising clients on domestic and international tax matters.
Vijay is actively involved in Transfer Pricing Litigation, both as an arguing counsel and as an advisor assisting clients in devising their litigation strategy. He regularly appears before various appellate forums including ITAT matters. He has also been actively involved in drafting the Guidance Note on Transfer Pricing issued by the Institute of Chartered Accountants of India.