Domestic TP

Assistance in compliance with Domestic TP provisions as introduced by the Finance Act, 2012, which extends the application of existing TP regulations for international transactions to certain domestic transactions defined as “Specified Domestic Transactions”.

The Finance Act, 2012 extended the application of existing TP regulations for international transactions to certain domestic transactions defined as “Specified Domestic Transactions” (“SDT”) with effect from Financial Year 2012-13. These regulations become applicable where the aggregate amount of all such domestic transactions exceeds INR 200 million in a financial year. Accordingly, taxpayers need to appropriately structure their TP policies based on a sound business rationale and commercial substance, and maintain robust underlying documentation to enable them to justify to the revenue authorities the transfer prices in respect of the SDTs at the time of audits.

KPMG in India’s GTPS team can help you meet your documentation and compliance needs through the following ways:

Help with identifying specific related parties and consequent SDTs emanating between them which would fall within the purview of domestic TP provisions
Help in conducting a thorough functional and benchmarking analysis in respect of the SDTs
Assist in developing and implementing commercially sensible and fiscally efficient TP policies
Assist in preparing contemporaneous documentation in a timely manner as required under the Indian TP regulations in respect of such SDTs.