Bangalore, May 30, 2013:
Department of Revenue is keen to remove all ambiguities related to application of Transfer Pricing provisions.
This was stated by Mr. K Satyanarayana, Chief Commissioner of Income Tax, Bangalore while inaugurating a Seminar on the subject organized by ASSOCHAM here today.
Delivering his inaugural address, Mr. Satyanarayana said that Transfer Pricing was a complex issue and many countries including developed ones were engaged with several issues related to implementation of these provisions.
He said that every country wanted to ensure that its soverign rigt to collect legitimate taxes was not eroded. Thus, there was scope for differences and debate on various aspects of Transfer Pricing as practiced in different countries.
Elaborating on the process of simplification of procedures and streamlining of processes, Mr. Satyanarayana said that following recommendations of Rangachari Committee, government has worked out several avenues for dispute resolution and all references made to concerned authorities were swiftly attended to.
Speaking on the occasion, Mr Rakesh Bhaskar, Commissioner, Transfer Pricing, Bangalore said that India has adopted a nuanced approach to develop Transfer Pricing provisions. This has allowed gradual development of provisions with sufficient room for innovations to be introduced. He said that so far the law related to Transfer Pricing has passed only through initial phase and would evolve over time.
Earlier welcoming the delegates Mr Asad Wasi, Director ASSOCHAM expressed concern at mounting number of litigations in Transferpricing related issues.
In her theme address, Ms K Venkatesh, Member, ASSOCHAM Southern Regional Council, called upon business corporations to give due emphasis on proper documentation to avoid getting into Transfer Pricing disputes. She said that proper documentation may reduce by half the problems faced by tax payers.