IN a letter to the UN Department of Economic & Social Affairs, Sanjay Mishra, Joint Secretary (FT&TR) in the CBDT ( India), stated that , in the case of Transfer Pricing, although it is governed by domestic legislation of each country, the OECD countries have agreed on a common transfer pricing guidelines known as OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (OECD Transfer Pricing Guidelines). the letter has pointed out that these guidelines on transfer pricing only reflect the agreements amongst Government of those countries that are members of OECD (developed countries) and accordingly tend to take care of interest of only developed countries and do not give right of taxation to source countries accordingly eroding taxing rights of developing countries.

India has requested that the United Nations may consider constituting inter-Governmental Commission (including sub - committees), having representatives from Governments of the developed and developing countries, on various issues relating to International Taxation and Transfer Pricing, to develop guidelines on the basis of consensus amongst Government of all countries, which take care of the interests of the developing countries. The letter Further stated that , in developing such guidelines, the recommendations of the Committee of Experts (1999) that the OECD principles as set out in the OECD Transfer Pricing Guidelines should be followed, must be ignored.