Transfer Pricing Audit Support Services
Professional CA Assistance During Transfer Pricing Assessments
A transfer pricing audit is a detailed examination by the Income Tax Department to verify whether international or specified domestic transactions between related parties comply with the arm’s length principle. These audits are technical, document-heavy, and closely scrutinised by Transfer Pricing Officers (TPOs).
N D Savla & Associates provides specialised Transfer Pricing Audit support services, assisting businesses through every stage of the assessment process with structured documentation, legal clarity, and strategic representation.
What Is a Transfer Pricing Audit?
A transfer pricing audit is initiated when the Assessing Officer refers a case to the Transfer Pricing Officer (TPO) for examination of related party transactions. The objective is to determine whether such transactions are conducted at arm’s length.
The audit typically involves:
Detailed review of transfer pricing documentation
Benchmarking analysis verification
Functional, asset, and risk (FAR) analysis
Queries on pricing methodology and comparables
Proposed adjustments and draft orders
Professional handling is critical to avoid adverse adjustments and penalties.
When Are Transfer Pricing Audits Triggered?
Transfer pricing audits may be triggered due to:
High-value international transactions
Recurring losses or low margins
Transactions with group entities in low-tax jurisdictions
Inconsistencies in margins across years
Industry-specific scrutiny by tax authorities
Preparedness and timely response make a significant difference.
Our Transfer Pricing Audit Services
We provide end-to-end support during transfer pricing audits, including:
Review of existing Transfer Pricing Study Report
Gap analysis and strengthening of documentation
Response drafting to TPO notices and questionnaires
Justification of pricing methodology and comparables
Fresh benchmarking and economic analysis, if required
Representation during audit proceedings
Assistance with draft assessment orders
Advisory on objections, appeals, and dispute resolution
Our approach is defensive, data-driven, and legally grounded.
Why Expert Support Is Crucial in TP Audits
Transfer pricing audits involve:
Technical interpretation of tax rules
Extensive economic and financial analysis
Tight timelines and multiple rounds of queries
High exposure to adjustments and penalties
Professional CA representation ensures clarity, consistency, and credibility before tax authorities.
Who Should Seek Transfer Pricing Audit Support?
Indian subsidiaries of foreign companies
Companies with international service or royalty arrangements
Shared service centres and captive units
Businesses facing proposed TP adjustments
Entities undergoing recurring TP scrutiny
If your case is under TP review, expert support is essential.
Why Choose N D Savla & Associates?
Experienced Chartered Accountants in transfer pricing litigation
Strong benchmarking and documentation capability
Hands-on handling of TPO proceedings
Practical and defensible audit responses
Strategic advisory beyond compliance
We focus on protecting margins and reducing litigation risk.
Transfer Pricing Audit Support – Pan India
We assist clients across India with transfer pricing audits, working closely with management and global tax teams to ensure consistent and defensible positions throughout the assessment.
FAQs – Transfer Pricing Audit
What is a Transfer Pricing Officer (TPO)?
A TPO is a tax authority responsible for examining related party transactions and determining arm’s length pricing.
Can transfer pricing adjustments be challenged?
Yes. Proposed adjustments can be challenged through objections, appeals, and appellate proceedings.
Is transfer pricing audit conducted every year?
Not necessarily. Audits are based on risk assessment and selection criteria by the tax department.
What are the penalties for transfer pricing non-compliance?
Penalties can include adjustment of income, interest, and penalties for non-maintenance or incorrect documentation.
Do you assist in appeals after TP audit?
Yes. We provide support in DRP, CIT(A), and ITAT proceedings arising from transfer pricing audits.
