Technology & Software Services
An Indian subsidiary of a USA-based ERP firm with 80%+ related-party revenue and operations across two states — we delivered a TP-ready audit and harmonized labor compliance across jurisdictions.
What the engagement demanded.
Indian subsidiary of a USA-based ERP software firm. Operations span Maharashtra and Gujarat with a large headcount. Over 80% of revenue comes from the USA-based parent (related party), creating Transfer Pricing complexity. Multi-state labor compliance (Professional Tax, PF, ESIC, MLWF), notional GST on foreign income flows, and Forex management for inward remittances added further layers to the audit.
How we executed the engagement.
Transfer Pricing Documentation
Master File, Local File preparation, and Country-by-Country Reporting awareness for the global group.
Arm's Length Pricing
TNMM benchmarking with comparable Indian software service providers, applied to related-party revenue.
Multi-state Labor Audit
Professional Tax (Maharashtra and Gujarat), PF, ESIC, MLWF — coordinated across both states.
Forex Tracking
Inward remittance reconciliation, FIRC matching, and forex gain-loss recognition.
Notional Service GST
Reverse Charge Mechanism review and deemed supply analysis for cross-border services.
The capabilities we brought to bear.
Transfer Pricing Strategy
TP study preparation, comparables benchmarking, and Form 3CEB filing with correct method selection.
Revenue Recognition
Contract-based, proportionate-fulfillment basis under Ind AS 115.
Multi-state Labor Compliance
Coordinated PT, PF, ESIC, MLWF compliance across Maharashtra and Gujarat operations.
Forex Management
Realized and unrealized forex gain/loss tracking, FIRC reconciliation.
Foreign Income Taxation
DTAA application, withholding tax claims, and credit reconciliation.
The results we delivered.
At N D Savla & Associates, we don't just ensure compliance — we help you make smarter financial decisions with clarity and confidence.
