Domestic Transfer Pricing
When businesses operate through multiple entities or divisions, transactions between related parties are common. The problem? Tax authorities don’t just look at what you did, they look at whether you priced it fairly.
That’s where domestic transfer pricing comes in.
At N D Savla & Associates, we help you structure, document, and defend your related-party transactions so they stand up to scrutiny. No unnecessary jargon. Just clear, practical guidance that keeps you compliant and audit-ready.
What this really means for you
If your business has transactions with related parties that cross specified thresholds, you’re expected to follow domestic transfer pricing rules under the Income Tax Act.
This includes:
Payments between group companies
Transactions with related parties covered under Section 40A(2)(b)
Units claiming tax holidays or deductions (like SEZ, 80-IA, etc.)
Any arrangement where profit shifting could be questioned
If not handled properly, this can lead to:
Disallowances of expenses
Increased tax liability
Lengthy scrutiny or audits
We help you stay ahead of all of that.
Our Approach
We don’t just prepare reports. We look at your business structure and identify risk areas early.
Here’s how we work:
1. Transaction Review
We map out all related-party transactions and check whether they fall under domestic transfer pricing provisions.
2. Arm’s Length Pricing Analysis
We benchmark your transactions using accepted methods to ensure pricing is defensible.
3. Documentation & Compliance
Preparation of transfer pricing documentation and Form 3CEB, keeping everything aligned with regulations.
4. Audit & Assessment Support
If scrutiny happens, we step in with clear explanations and proper backing so you’re not left guessing.
Why Clients Choose Us
We keep things simple and practical
We focus on risk, not just compliance
We respond quickly when something urgent comes up
We think like advisors, not just report makers
Who Should Consider This?
Companies with high-value related-party transactions
Businesses with multiple group entities
Units claiming tax deductions or operating in special zones
Anyone who wants to avoid last-minute compliance stress
F.A.Q.
It refers to pricing of transactions between related parties within India, where tax regulations require those transactions to be at arm’s length.
It applies when specified domestic transactions exceed the prescribed threshold (currently ₹20 crore in aggregate).
It’s the price that would have been charged if the transaction happened between unrelated parties under similar conditions.
Yes. If your transactions fall under domestic transfer pricing, Form 3CEB must be certified by a Chartered Accountant and filed along with your return.
Non-compliance can lead to penalties, adjustments in income, and increased tax liability during assessments.
We handle everything end-to-end—from identifying applicable transactions to documentation and audit support—so you don’t have to deal with last-minute surprises.
