Transfer Pricing & Related Party Transactions & Liability of Freight Forwarders in India

Move estimating alludes to the evaluating of merchandise, administrations, or elusive resources between related parties, like auxiliaries and members of a similar worldwide organization. The objective of transfer pricing regulations is to ensure that transactions between related parties are conducted at arm’s length, meaning the prices are comparable to what would be charged between unrelated parties in an open market. In India, transfer pricing regulations are governed by the Income Tax Act, 1961, under sections 92 to 92F and Rule 10A to 10E of the Income Tax Rules, 1962. The Indian government introduced transfer pricing regulations to prevent the erosion of the country’s tax base through manipulation of intercompany pricing. Related Party Transactions, common in multinational corporations, demand adherence to arm’s length principles to maintain equity.