{"id":8443,"date":"2020-09-16T00:02:09","date_gmt":"2020-09-15T18:32:09","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=8443"},"modified":"2022-02-03T18:11:32","modified_gmt":"2022-02-03T12:41:32","slug":"three-tier-tp-documentation-threshold-requirement","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/","title":{"rendered":"Three-tier TP Documentation &#038; threshold Requirement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dbb8c04f726\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dbb8c04f726\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Three-tier_Transfer_Pricing_Documentation_threshold_Requirement\" title=\"Three-tier Transfer Pricing Documentation &amp; threshold Requirement\">Three-tier Transfer Pricing Documentation &amp; threshold Requirement<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Purpose\" title=\"Purpose\">Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Timeline\" title=\"Timeline\">Timeline<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Structure_of_three-tier_transfer_pricing_documentation\" title=\"Structure of three-tier transfer pricing documentation:\">Structure of three-tier transfer pricing documentation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Applicability_of_CbCR\" title=\"Applicability of CbCR\">Applicability of CbCR<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Particulars\" title=\"Particulars\">Particulars<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Threshold\" title=\"Threshold\">Threshold<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Compliance_applicable_on_Transfer_Pricing\" title=\"Compliance applicable on Transfer Pricing\">Compliance applicable on Transfer Pricing<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Section_92D_Master_File_Forms\" title=\"Section 92D (Master File Forms)\">Section 92D (Master File Forms)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Purpose-2\" title=\"Purpose\">Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Conditions_Apply\" title=\"Conditions Apply\">Conditions Apply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Timeline-2\" title=\"Timeline\">Timeline<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#_Compliance_Under_CBCR\" title=\"\u00a0Compliance Under CBCR\">\u00a0Compliance Under CBCR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Time-Time_for_Creating_Transfer_Pricing_Documents\" title=\"Time-Time for Creating Transfer Pricing Documents\">Time-Time for Creating Transfer Pricing Documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Summarizing\" title=\"Summarizing\">Summarizing<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#TP_LIBOR_IS_THE_BEST_BENCHMARK_FOR_INTEREST-FREE_LOAN_GRANTED_TO_AE\" title=\"TP: LIBOR IS THE BEST BENCHMARK FOR INTEREST-FREE LOAN GRANTED TO AE\">TP: LIBOR IS THE BEST BENCHMARK FOR INTEREST-FREE LOAN GRANTED TO AE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/three-tier-tp-documentation-threshold-requirement\/#Aims_and_Objective_of_TP\" title=\"Aims and Objective of TP\u00a0\">Aims and Objective of TP\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_12428\" aria-describedby=\"caption-attachment-12428\" style=\"width: 753px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Three-tier-Transfer-Pricing-Documentation-threshold-Requirement..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12428\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Three-tier-Transfer-Pricing-Documentation-threshold-Requirement..jpg\" alt=\"Three-tier Transfer Pricing Documentation &amp; threshold Requirement\" width=\"753\" height=\"477\" \/><\/a><figcaption id=\"caption-attachment-12428\" class=\"wp-caption-text\">Three-tier Transfer Pricing Documentation &amp; threshold Requirement<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Three-tier_Transfer_Pricing_Documentation_threshold_Requirement\"><\/span>Three-tier Transfer Pricing Documentation &amp; threshold Requirement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Taxpayers are expected to maintain, on a yearly basis, a collection\u00a0of detailed information and documentation relating to international transactions performed with AEs or specified domestic transactions.<\/p>\n<p>Rule 10D of the <a href=\"https:\/\/carajput.com\/income-tax-services.php\">Income Tax Rules of 1962<\/a> provides for accurate records and documents to be kept by the taxpayer. These specifications may generally be divided into two sections.<\/p>\n<p>The very first part of the rule sets out required documents\/data which must also be preserved by a taxpayer; the second part of the rule specifies that sufficient documentation is kept to support the data\/analysis\/studies recorded below the first part of the law. The second part also includes a suggested list of such supporting documentation, like government papers, reports, surveys, technical papers\/market research studies performed by credible organizations, price publications, relevant agreements, agreements, and communications.<\/p>\n<p>Taxpayers with cumulative foreign transactions just below the defined INR 10 million threshold and specified domestic transactions below the INR 50 million thresholds are exempted from keeping the defined documents. However, even in these situations, it is crucial that the documents preserved should be sufficient to sustain the price of the arms-length of international transactions or defined domestic transactions.<\/p>\n<p>Both required records and details must be preserved at the same time (to the extent possible) and must be in order by the due date of the filing of the tax return. Businesses subject to the regulations are usually expected to file their tax returns on or before 30 November following the conclusion of the tax year in question.<\/p>\n<p>The required records must be retained for a period of nine years from the end of the applicable tax year and must be revised on a continual basis an annual basis. Supporting document provisions also extend to multinational companies whose income is subject to Indian tax liability.<\/p>\n<table style=\"height: 4586px;\" width=\"780\">\n<tbody>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\n<table style=\"height: 228px;\" width=\"741\">\n<tbody>\n<tr>\n<td width=\"240\"><\/td>\n<td width=\"230\">\n<h3><span class=\"ez-toc-section\" id=\"Purpose\"><\/span>Purpose<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"330\">\n<h3><span class=\"ez-toc-section\" id=\"Timeline\"><\/span>Timeline<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">Applicable -Form 3CEB<\/td>\n<td rowspan=\"2\">Chartered Accountant\u2019s report in respect of the international transaction<\/td>\n<td>Within 8 months from the end of the financial year.<\/td>\n<\/tr>\n<tr>\n<td>Last Date:- 31st October 2020<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">TP Study Report<\/td>\n<td rowspan=\"2\">Analysis to show international transactions are at arm\u2019s length<\/td>\n<td>Within 8 months from the end of the financial year.<\/td>\n<\/tr>\n<tr>\n<td>Last Date:- 31st October 2020<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Structure_of_three-tier_transfer_pricing_documentation\"><\/span><span style=\"color: #000080;\">Structure of three-tier transfer pricing documentation:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>Local File-This must be recorded by the Organization itself.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Master File-Requires to be filed with the IT department.<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nation by Nation Study \u2013 Requires to be sent to the IT Department.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Applicability_of_CbCR\"><\/span><span style=\"color: #000080;\">Applicability of CbCR<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"height: 126px;\" width=\"760\">\n<tbody>\n<tr>\n<td width=\"356\">\n<h3><span class=\"ez-toc-section\" id=\"Particulars\"><\/span><span style=\"color: #000080;\"><strong>Particulars<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"156\">\n<h3><span class=\"ez-toc-section\" id=\"Threshold\"><\/span><span style=\"color: #000080;\"><strong>Threshold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"356\">Consolidated revenue of International Group<\/td>\n<td width=\"156\">INR 5500 Crore<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Note:<\/strong><\/p>\n<p>Turnover to be taken for Master File is the Accounting Year (i.e., for F.Y 2019-20, accounting Year will be 2019-20)<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Compliance_applicable_on_Transfer_Pricing\"><\/span><span style=\"color: #000080;\">Compliance applicable on Transfer Pricing<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/taxguru.in\/income-tax\/rule-10da-requirements-for-filing-a-master-file.html\">Master File<\/a>\u2013 Forms and Timelines<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>\n<table style=\"height: 670px;\" width=\"763\">\n<tbody>\n<tr>\n<td width=\"15%\">\n<h3><span class=\"ez-toc-section\" id=\"Section_92D_Master_File_Forms\"><\/span><span style=\"color: #000080;\">Section 92D (Master File Forms)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"25%\">\n<h3><span class=\"ez-toc-section\" id=\"Purpose-2\"><\/span><span style=\"color: #000080;\">Purpose<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"25%\">\n<h3><span class=\"ez-toc-section\" id=\"Conditions_Apply\"><\/span><span style=\"color: #000080;\">Conditions Apply<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<td width=\"25%\">\n<h3><span class=\"ez-toc-section\" id=\"Timeline-2\"><\/span><span style=\"color: #000080;\">Timeline<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"4\">Form 3CEAA<\/td>\n<td rowspan=\"2\">Part A: &#8211; Basic Limited details to be furnished.<\/td>\n<td rowspan=\"2\">Every constituent entity\/ designated constituent entity of an international group has to file Part-A irrespective of the turnover.<\/td>\n<td>Within eight months from the end of the FY.<\/td>\n<\/tr>\n<tr>\n<td>For Assessment Year 2020-21:-\u00a030th\u00a0November 2020<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">Part B: &#8211;\u00a0Detailed details to be furnished. (Broadly same as OECD Master File)<\/td>\n<td>1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total revenue &gt; 500 cr; and<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Aggregate international transactions&gt; 50 cr or; intangible related transactions &gt; 10 cr.<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">Form 3CEAB<\/td>\n<td>To notify the Constituent Entity designated for furnishing Master File<\/td>\n<td rowspan=\"2\">When there is more than one CE in India.<\/td>\n<td>30 days before the due date of furnishing Form 3CEAA.<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>For Assessment Year 2020-21:- 31st October 2020<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<h2><\/h2>\n<p><span style=\"color: #000080;\">Transfer pricing rules wouldn&#8217;t really apply if the arms-length price results in a downward revision of the income taxed in India.<\/span><\/p>\n<p><span style=\"color: #000080;\"><strong>Burden of proof<\/strong><\/span><\/p>\n<p>The responsibility of establishing the arm&#8217;s length existence of the transaction rests mainly with the taxpayer. If during the audit process on the basis of content, details, or records in their possession, the tax authorities are of the opinion that the arm&#8217;s-length price did not apply to the transaction or that the taxpayer did not maintain \/ Produce sufficient and accurate documentation \/ Details\/information, the overall taxable income of the taxpayers may be computed as follows after the hearing right has been provided.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"_Compliance_Under_CBCR\"><\/span>\u00a0<span style=\"color: #000080;\">Compliance Under CBCR<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>CbCR \u2013 Forms and Timelines :<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>\n<table style=\"height: 795px;\" width=\"771\">\n<tbody>\n<tr>\n<td width=\"127\"><strong>Particulars<\/strong><\/td>\n<td width=\"190\"><strong>Purpose<\/strong><\/td>\n<td width=\"223\"><strong>When to file?<\/strong><\/td>\n<td width=\"150\"><strong>Timeline<\/strong><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\">Form 3CEAC<\/td>\n<td>To intimate Alternate Reporting Entity<\/p>\n<p>or PE (Whether itself or some other)<\/td>\n<td rowspan=\"3\">If international Total revenue &gt; 5500 crores (If CE is resident in India)<\/td>\n<td>2 months prior to the due date for furnishing Form 3CEAD.<\/td>\n<\/tr>\n<tr>\n<td>To intimate Alternate Reporting Entity<\/p>\n<p>or PE (Whether itself or some other)<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>For Assessment Year 2020-21:- 31st October 2020<\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\">Form 3CEAC<\/td>\n<td rowspan=\"3\">CBCR Reporting requirement<\/td>\n<td rowspan=\"3\">If international \u00a0Total revenue &gt; 5500 crores<\/td>\n<td>Within twelve months following the end of reporting accounting year.<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td>For Assessment Year 2020-21:- 31st December 2020<\/td>\n<\/tr>\n<tr>\n<td>Form 3CEAC<\/td>\n<td>To notify the Constituent Entity designated for furnishing CBCR, only if there is more than one Constituent Entity in India (and conditions given in note 1 below are fulfilled)<\/td>\n<td>If international Total revenue &gt; 5500 crores<\/td>\n<td>Not Specified yet as per the Final Rules.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td>\n<table style=\"height: 555px;\" width=\"772\">\n<tbody>\n<tr>\n<td width=\"41\"><strong>S.No<\/strong><\/td>\n<td width=\"204\"><strong>Turnover<\/strong><\/td>\n<td width=\"415\"><strong>Compliance to be made <\/strong><\/td>\n<\/tr>\n<tr>\n<td>1. a)<\/td>\n<td>\u00a0\u00a0Upto 500 Crores<\/td>\n<td rowspan=\"4\">All Constituent Entity \/Designated Constituent Entity of the international group to file Part A of Form 3CEAA<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 b)<\/td>\n<td>\u00a0\u00a0&gt;500 crores but &lt; 5500 crores<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 c)<\/td>\n<td>\u00a0\u00a0International transaction &lt; 50 crore and;<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 d)<\/td>\n<td>\u00a0\u00a0Intangible related transactions &lt; 10 crores<\/td>\n<\/tr>\n<tr>\n<td>2. a)<\/td>\n<td>&gt;\u00a0\u00a0 500 crores but &lt; 5500 crores; and<\/td>\n<td rowspan=\"3\">Part A and Part B of Form 3CEAA<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 b)<\/td>\n<td>\u00a0\u00a0International transaction &gt; 50 crore; or<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 c)<\/td>\n<td>\u00a0\u00a0Intangible related transactions &gt; 10 crores<\/td>\n<\/tr>\n<tr>\n<td>3. a)<\/td>\n<td>\u00a0\u00a0&gt; 5500 crores<\/td>\n<td>CBCR requirements apply on entity<\/td>\n<\/tr>\n<tr>\n<td>4. a)<\/td>\n<td>&gt;5500 crores; and<\/td>\n<td rowspan=\"3\">Details to be Maintain and furnish Master File. Also, CBCR requirements apply on entity<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 b)<\/td>\n<td>\u00a0\u00a0International transaction &gt; 50 crores; or<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0 c)<\/td>\n<td>\u00a0\u00a0Intangible related transactions &gt; 10 crores<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Time-Time_for_Creating_Transfer_Pricing_Documents\"><\/span>Time-Time for Creating Transfer Pricing Documents<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_8449\" aria-describedby=\"caption-attachment-8449\" style=\"width: 786px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/d2182957a4c722448fce2c1d3ca11817.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8449\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/d2182957a4c722448fce2c1d3ca11817.jpg\" alt=\"www.carajput.com; Creating Transfer pricing\" width=\"786\" height=\"589\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/d2182957a4c722448fce2c1d3ca11817.jpg 480w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/d2182957a4c722448fce2c1d3ca11817-300x225.jpg 300w\" sizes=\"(max-width: 786px) 100vw, 786px\" \/><\/a><figcaption id=\"caption-attachment-8449\" class=\"wp-caption-text\">www.carajput.com; Creating Transfer pricing<\/figcaption><\/figure>\n<p>Regrettably, the timeline for processing the report varies from country to country. Many countries need details to be ready when a tax return is filed. Other countries want to see something ready at the time of the audit.<\/p>\n<p>Even so, the whole rationale of the transfer pricing legislation is to consciously enforce the Arm&#8217;s Length concept. You do this by determining the right transfer price before the actual transaction takes place. What this means is that you build up the transfer pricing paperwork over the year when you&#8217;re doing the business. Not at end of each year, like that.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Summarizing\"><\/span>Summarizing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_12431\" aria-describedby=\"caption-attachment-12431\" style=\"width: 767px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Transfer-Pricing-Documentatio.gif\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12431\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/Transfer-Pricing-Documentatio.gif\" alt=\"Transfer Pricing Documentation\" width=\"767\" height=\"771\" \/><\/a><figcaption id=\"caption-attachment-12431\" class=\"wp-caption-text\">Transfer Pricing Documentation<\/figcaption><\/figure>\n<p>The latest events have given rise to a renewed emphasis on transfer pricing practices. Standard reporting standards are now in place to address (assumed) abusive tax practices.<\/p>\n<p>The aims of such provisions are, first of all, to increase awareness of the transfer pricing legislation and the environment of adherence. In addition, the report provides policymakers with an analysis of possible threats. In the end, it makes the future audit much simpler.<\/p>\n<p>There are many three reports to be given. Master File, Local File, Country-by-Country Chart. The Country-by-Country report is for major Multi-National Companies with a turnover of Dollars 750 million or more.<\/p>\n<p><strong>Popular Blog:-\u00a0<\/strong><\/p>\n<h4><span class=\"ez-toc-section\" id=\"TP_LIBOR_IS_THE_BEST_BENCHMARK_FOR_INTEREST-FREE_LOAN_GRANTED_TO_AE\"><\/span><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/tp-libor-is-the-best-benchmark-for-interest-free-loan-granted-to-ae\/\">TP: LIBOR IS THE BEST BENCHMARK FOR INTEREST-FREE LOAN GRANTED TO AE<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Aims_and_Objective_of_TP\"><\/span><a href=\"https:\/\/carajput.com\/learn\/aims-and-objective-of-transfer-pricing.html\"><strong>Aims and Objective of TP\u00a0<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Three-tier Transfer Pricing Documentation &amp; threshold Requirement Taxpayers are expected to maintain, on a yearly basis, a collection\u00a0of detailed information and documentation relating to international transactions performed with AEs or specified domestic transactions. Rule 10D of the Income Tax Rules of 1962 provides for accurate records and documents to be kept by the taxpayer. These &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[82],"tags":[9279,9278,9280,9281,9283,9282],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8443"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=8443"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8443\/revisions"}],"predecessor-version":[{"id":21804,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8443\/revisions\/21804"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=8443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=8443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=8443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}