AS per
KPMG Survey, transfer pricing has emerged as a major area of serious concern
for the Indian corporate taxpayers having offices abroad. More than 67%
of 160 finance heads of various entities the KPMG spoke to, said that TP
has turned out to be a major hurdle in taking decisions as it has almost
doubled their tax liabilities in the recent years.
Some
of the new areas of concern identified by respondents are the corporate
guarantee given by the parent to the subsidiary and brand building expenditure.
The Income Tax Department has hiked its revenue collections target from
TP by almost 50%. The Survey also found that income tax and service tax
emerged as second and third areas of concern for the corporate.
|
