Tax Hotline January 06, 2001

Transfer Pricing Regulations to include penalties to check fraudulent transfer pricing

The Raj Narain committee appointed by the Central Board of Direct Taxes of India will make its recommendations on the transfer pricing policy by the end of January. These recommendations are expected to figure in the next budget.

One of the steps being considered is levying penalties on companies who refuse to comply with the requirements of reporting transfer pricing arrangements along with supporting documents to the Revenue authorities within the stipulated time.

The OECD guidelines suggest that the penalty should be calculated as a percentage of the understated tax. This may range from 10% to 200%. In India the aforesaid committee may opt for the already existing provisions of the Income Tax Act, which levies a penalty for concealment of income which ranges from 100 to 300 percent of the suppressed tax or may bring in a new a rate of penalty for assessments of transfer pricing.

Source: The Economic Times, January 6, 2001

Mission and Vision

Distinctly Different


NDA cCep: Upcoming Programs
April 06, 2020


NASSCOM HR Forum: An interactive workshop on "The Code on Wages 2019"
February 25, 2020

This event is over. For event material please click here

Round Table

Indian Infrastructure Sector – Decoding InvITs
November 14, 2019

This event is over. For event material please click here

Want to work with us?


Inviting Top Talent for our Corporate Law, Infrastructure, IP and International Tax Practices

Strong credentials in Corporate Law (in particular M&A or Fund Investment), Infrastructure, IP or International Tax? Now’s the time to apply. We’re looking for the industry's best talent with scope to do extraordinary work for the world’s best, marquee clients. Reach out for a great career in a great place!

Write to happiness(at)



Nishith Desai Associates 2013. All rights reserved.