India transfer pricing effort yields $5bn
"India introduced the transfer pricing legislation in the year 2001. The transfer pricing regulations have come of age in India - both in terms of quality of audits as well as the revenue generated for the Government. Till date, the Directorate of Transfer Pricing has made an adjustment of Rs. 23,000 crore (approx. US $ 5000 million), which is a great achievement in a small period of time."
Indeed it is a great achievement -- and this involves tinkering around with existing practices. We are also startled to see this:
"The tax concessions to industry are more than Rs. 42,000 cr."
That would be almost $10bn a year. We don't know the details, but this looks like just the legal stuff. The whole speech is well worth reading. TJN is gearing up for a major transfer pricing project very soon, exploring alternative methods.
P.S. Apologies for low blogging rate recently. Other things are taking precedence; normal service will be resumed shortly.