Economy

Indian MNCs on taxman’s radar

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Leading global financial consultancy firm Ernst and Young has stated that Indian multinational companies (MNCs) having transactions with overseas group firms, especially those engaged in software and IT, are on the taxman’s radar.

In the 2009 Global Transfer Pricing Survey, E & Y has stated that: “The transactions that have caught the attention of the authorities include intra-group services (software, ITeS, other services), tangible goods, intellectual properties like royalties, licensing, financial transactions and cost-sharing or cost-pooling arrangements.”

Transfer pricing helps authorities tax companies having foreign units as it is the method of assigning prices to the transactions of firms with their overseas units.

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Printable version | Dec 12, 2019 4:29:06 PM | https://www.thehindu.com/business/Economy/Indian-MNCs-on-taxmanrsquos-radar/article16886304.ece

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