A collaborative approach from all stakeholders could help resolve issues related to Transfer Pricing litigations, says  CII in a Conference on Transfer Pricing

31st August 2010, New Delhi, Over the past one year, transfer pricing has become one of the most debated issue for stakeholders like tax authorities, corporate bodies and also the tax payers, said Mr Zubin J Irani, Chairman, CII Delhi State Council at a Conference on Transfer Pricing organized by CII in association with Grant Thornton India at New Delhi on 31^st August 2010. He further added that the idea of the  forum was to understand the landmark judicial pronouncements in the area of Transfer Pricing and related issues like Permanent Establishment and improve the quality or argument and documentation through some learnings as well as Unlearnings from Transfer Pricing litigation.

Mr Milap Jain, Director General, Income Tax(International Taxation), New Delhi and The Chief Commissioner of Delhi 1,  was the Chief Guest at the conference and he highlighted the various measures taken by The Government Of India like introducing new provisions for transfer pricing in The Direct Tax Code.

Ms Karishma R. Phatarphekar, Partner & Practice leader Transfer Pricing services, Grant Thornton India, shared the practical issues around this area. She commented that litigation for transfer pricing in India has been increasing multi fold over the last few years. Karishma also discussed that, the government themselves have  realised the importance of dealing with this issue sensitively and therefore have considered various initiatives like introduction of the Dispute Resolution Panel and Safe Harbor Rules. Although not much justice is being seen through the DRP, it is clear that the intent of the government is atleast to move up the value chain on these issues.

Mr Deepak Dhanak, Vice President and Head of Tax, EXL Service in his address stated that transfer pricing is still a very new topic for the Indian industry and dependence on global industry data makes it difficult for Indian organizations. He focused on the need to building flexible policies to keep pace with the constantly changing business environment.

Mr Bharat Bandhu emphasized on the work that needs to be done to strengthen the trust and faith between investors and businessmen. He talked about reviving the faith in tribunal judgements in India.

Mr Arun Chhabra Partner, Tax and Regulatory Services, Walker Chandiok & Co touched upon the issues for non residents doing business in India. India continues to be an attractive destination for investment, He mentioned the areas where multinational enterprises need to focus more, so as to effectively manage the profits attributable to a  Permanent Establishment.

The conference concluded with a panel discussion and an Open House Session where several questions were put to the speakers. The programme was attended by representatives from various industrial  sectors and several law firms.

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