Posted on March 14, 2016
Transfer pricing officers made an incorrect calculation of the arm’s length price in ten high-value transactions, according to the report of the Comptroller and Auditor General of India.
The report, which was released on March 11, 2016, examines transfer pricing orders passed in ten high-value cases during January 2014 to January 2015 by tax officers of the Indian cities of Ahmedabad, Hyderabad, and Mumbai.
In these cases, transfer pricing officers made mistakes in arriving at arm’s length price and adjustments thereof, the report points out.
The transactions examined involve the following companies: Reliance Mediaworks Limited, Vedanta Aluminum Limited, Thomas Cook India Limited, Aditya Birla Minacs Worldwide Limited, QSG Resource Management Private Limited, KHS Machinery Private Limited, Quintiles Technologies India Private Limited, Bridgestone India Private Limited, Dr. Reddy’s Laboratories Limited, and Cognizant Technology Services (P) Limited.
The report also discusses direct taxes administration, audit mandate and findings of compliance audit, and write-off of arrears of tax demand.