India’s Central Board of Direct Taxes on 21 May 2015 issued a draft of proposed rules on implementing a “range concept” and multiple-year data for use in computing the arm’s length price of international transactions and of certain specified domestic transactions undertaken on or after 1 April 2014.
Comments and suggestions from stakeholders and the general public are due by 31 May 2015.
Since its introduction in 2001, the Indian transfer pricing regulations have been a significant area of focus for both the tax department and taxpayers alike. In particular, in computing the arm’s length price, there have been two areas of concern—the availability of a range as a standard deduction and the use of single-year versus multiple-year data.
Read a May 2015 report [PDF 355 KB] prepared by the KPMG member firm in India: CBDT rolls out draft scheme for range concept and multiple year data prescribed under TP regulations for public comments