Transfer Pricing – A tool mis-used for transferring illicit funds outside the country

The words like corruption , black money transactions are not new to the people of our country, we have known this for a long time now.

The Government has always tried its best and still, continues to work on this aspect, but somehow there has been no good results, because no one asked questions as to why is it not  been regulated inspite of the efforts taken by our government.

Now we can sense that their could be a real change as the Income Tax Department has detected unaccounted income of Rs 18,750 crore in the last two financial years and collected an additional Rs 22,697 crore as taxes by stepping up vigil on cross border transactions.

Besides,  the government detected mis-pricing of goods to the tune of Rs 33,784 crore in the last two years.

Called as transfer pricing in tax parlance, the mis-pricing has emerged as the main method of transferring illicit funds outside the country.
The success in checking the menace of black money has been achieved because of the  focused strategy adopted by the Finance Ministry, a postive sign seen to control corruption.

Tag: transfer pricing

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About Taniya

Taniya | Associate

eMinds Legal Consulting Pvt. Ltd. is a Consulting Firm in India specialzing in Corporate Laws, Compliances, Secretarial, FEMA, Indirect Taxation, Cyber Laws & Contracts. The Firm comprises of a team of professionals of Company Secretaries, Lawyers and Chartered Accountants with an in-depth subject matter knowledge and participative industry experience of over 12 years.

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