Transfer pricing is the setting of the price for goods and services sold between controlled or related legal entities within an enterprise. In principle though, a transfer price should match either what the seller would charge an independent, arm's lenght customer, or what the buyer would pay an independent, arm's length supplier. While unrealistic transfer prices do not affect the overall enterprise directly, they become a concern for government taxing authorities when transfer pricing is used to lower profits in a division of an enterprise located in a country that levies high income taxes and raise profits in a country that is a tax haven that levies no income taxes. The current OECD approach attempts to allocate profits by emphasizing more on functions than assets and risks. The three-layered documentation approach - comprising a master file, a local file and a country-by-country report (CbCR) - is likely to become a legal requirement effective for financial year 2016-17. It is anticipated that the OECD recommendation on CbC reporting requirements being made applicable for multinational companies with annual consolidated group revenues equal to or exceeding Rs. 5,500 crores approx will be retained in the Indian local law also. And so as the compliance landscape changes with every change of season, the need for sophisticated and updated regulatory consultant to strategize, analyze, document and adjust the charges accordingly becomes high and inevitable.
In this issue of Consultants Review magazine, we bring you the “25 Most Promising Transfer pricing Consultants.” The list features some of the most renowned Transfer Pricing Consultants who ensure unparalleled efficiency stamped with their signature hallmark and who strive to render their own array of services and products that will leave an indelible mark in the market. The proposed list aims to aid companies and organizations to choose their strategic partner to uphold their reputation and sustain it without entertaining any risks.