In an international trade transaction, there is a time lag between the transfer of goods by the exporter to the importer, and transfer of payment by the importer to exporter. To protect both parties from counter-party risk, a number of documents are created and used. These are listed below: 1. Bill of Exchange 2. Bill of Lading 3. Letter of [...]
In this article we will discuss about:- 1. Meaning of Transfer Pricing 2. Transfer Pricing in India 3. Transfer Pricing Methods 4. Case Study on Tarragon Chemicals and Transfer Pricing. Meaning of Transfer Pricing: Transfer price is the price at which two related parties undertake a commercial transaction between each other. The related parties are called associated enterprises. So, transfer [...]
The location of a business and structuring of a company's activities to take advantage of low tax opportunities, with the aim of optimizing taxes, is called tax planning. It is both a tax reduction and tax avoidance mechanism. The objective of tax planning is to reduce (rather than minimize) a group's tax burden and its effective tax rate. MNCs use [...]