Nasscom seeks clarity in transfer pricing norms
Quotes
 

 

HomeNewsBudget ImpactExclusiveTaxRail Budget Celeb Speak Eco Survey
 

Nasscom seeks clarity in transfer pricing norms

Last Updated: Saturday, February 16, 2013, 13:09
 
 Comment 1
 
New Delhi: Software body Nasscom has asked the government to clarify transfer pricing norms and introduce more measures to promote research and entrepreneurship in the USD 100-billion Indian IT-BPO sector.

In its pre-budget recommendations, Nasscom has said that the Budget should be a policy declaration and it should not be just about taxes.

"Transfer pricing is an important issue and it needs to be resolved as India has to become a hub wherein we do development here and MNCs come and generate jobs. In that, transfer pricing is an issue," Nasscom President Som Mittal said.

Transfer pricing is a mechanism used by large companies regarding transaction prices between separate entities of the same group. Multinationals are often accused of misusing the system to transfer profits to their subsidiaries in low tax countries.

The law requires that goods and services should be sold to subsidiaries by parent companies at arm's length price, the price at which goods are traded between unconnected companies.

Taxing these units has become a complex area for the revenue department, with the government often disagreeing on the profits declared by a foreign company for its Indian unit.

Last year, the government set up N Rangachary Committee to look into taxation matters of the IT sector and research and development activities.

On Budget expectations, Mittal said: "The Budget should be growth oriented. We need to create an environment so that there is an increase in investments and industries grow."

He suggested that the government should adopt an 'entrepreneurship mission' under which support and tax exemptions should be given to small companies to help ease business.

The government should support research and innovations as they are important to the industry, he said.

"The Budget should not be just about taxes, it is a policy declaration. Whatever recommendations we have submitted, there is no pressure on the exchequer. We are saying that through policy announcement, an environment of increased business confidence is created, so that more investments come in," Mittal said.

PTI

First Published: Sunday, January 27, 2013, 12:44

Comments

Really hope RAIL BUDGET 2013 turns out to be a phase of transformation for TRIPURA from being just a state (being in backwardness for decades) to a NEW FACE OF EMERGING INDIA with significant contribution and stimulation to global economy!! Not a single world class rail facility (starting from poor amenities in stations, sub standard coaches, irregular train timings, lack of safety during night travel etc ) exist in different railway stations in TRIPURA how much are we prepared once AGARTALA - AKHAURA rail link opens up for connecting TRIPURA to other parts India and outside world (through Chittagong international port)? We really need to move forward by developing TRIPURA with world class infrastructures and bring it at par with best of the other Indian states in the shortest possible time! 1Facilities and internal infrastructure of AGARTALA RAIL STATION need to be raised to the level of a Central Mumbai or Central Chennai railway station (with below features especially)! -Vissionary -India
First Prev 1 Next Last 

Post your Comments

Name
Place :
Email :  
Comments :  
 
Other Stories
MSME Sector

P Chidambaram proposed continuing non-tax benefits to these units for three years.

Full Article »

IT-BPO Sector

Clarity on tax issues related to R&D centres in IT soon.

Full Article »

Infrastructure

Big push to infra with Rs 50k cr tax-free bonds, two new ports.

Full Article »

Real Estate Sector

FM raised tax deduction limit by Rs 1 lakh for the first time home buyers.

Full Article »

Auto Sector

Excise duty on SUV will be raised to 30 percent from 27 percent.

Full Article »

More »

Latest Videos
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
rail budget
Rail Minister announced no hike in passenger fares.
know your fm
P Chidambaram- Man of all seasons.
Opinion Poll
How would you see Budget 2013 as?
Pragmatic
Populist
Non-event
 
 
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved