International Tax & Transfer Pricing Advisory – CA Vijay Singh
International Tax & Transfer Pricing: Architecting a Tax-Efficient Global Footprint
Navigate Global Tax Complexity with Confidence. We Design Structures That Minimize Tax Leakage and Ensure Bulletproof Compliance.
For any business operating across borders, international tax is a critical component of profitability. Poorly planned tax strategies can lead to double taxation and significant financial penalties. Our expertise ensures your global footprint is structured for optimal efficiency, leveraging tax treaties and robust transfer pricing policies to protect your bottom line.
What We Deliver:
- Double Taxation Avoidance Agreement (DTAA) Advisory: We leverage India’s extensive network of tax treaties to design strategies that eliminate or significantly reduce the double taxation of cross-border income streams like dividends, interest, royalties, and fees for technical services.
- Transfer Pricing Strategy & Documentation: We help you develop and document an arm’s length transfer pricing policy for all your inter-company transactions. This includes preparing the mandatory documentation (Master File, Local File) to ensure your pricing can withstand scrutiny from tax authorities.
- Cross-Border Tax Structuring: We provide strategic advice on the most tax-efficient corporate structures for your international operations, including planning for holding companies, financing structures, and the location of intellectual property to optimize your global effective tax rate.
Build a Tax Strategy as Global as Your Ambition
Don’t let inefficient structures or compliance gaps erode your profits. Whether you’re planning cross-border expansion, restructuring inter-company transactions, or preparing for tax audits, we’ll help you stay bulletproof and tax-efficient everywhere you operate.
Entering the Indian market felt overwhelming. The regulations seemed to change by state, and we didn't know where to begin. The team provided a complete India Entry blueprint—from market feasibility and entity structuring to navigating RBI approvals. They acted as our team on the ground, turning a complex process into a clear, manageable project. We were operational months ahead of schedule.
We wanted to set up a subsidiary in the US to serve our North American clients. The FEMA and RBI compliance seemed like a maze. The firm handled our entire Overseas Direct Investment (ODI) filing, ensuring we were fully compliant. They didn't just file forms; they structured the investment for optimal tax efficiency under the DTAA, saving us significant tax leakage from day one.
Vijay R Singh & Co. helped the client achieve accurate and timely financial reports, resulting in quicker decision-making and a clearer picture of cash flow and compliance. Their team was professional, responsive, flexible, and personable. They also explained things patiently.
Frequently Asked Questions
Treating India as a single, monolithic market. India is incredibly diverse, with different consumer behaviors, regulations, and business cultures across states. A successful strategy requires deep local knowledge and the flexibility to adapt your approach region by region.
Transfer pricing refers to the rules for pricing transactions between related entities (e.g., your Indian subsidiary and your foreign parent company). Tax authorities require these transactions to be at an "arm's length price" the price unrelated parties would agree to. Proper transfer pricing documentation is critical to avoid tax disputes and penalties.
This structure, known as "round-tripping," is highly regulated by the RBI. While recent rules have provided some flexibility, it generally requires careful structuring to ensure compliance with FEMA and avoid being seen as a device for tax avoidance. It's crucial to seek expert advice before implementing such a structure.
International Tax & Transfer Pricing
DTAA application, permanent establishment analysis, transfer pricing documentation and Form 3CEB, withholding tax, equalisation levy, and Indian-side compliance for cross-border groups.
By CA Vijay R Singh, FCA
ICAI Membership No. 153926 | FRN 136869W | Practising since 2013
Quick Summary
Cross-border tax is the area where the wrong default position compounds fastest. A missed PE analysis, an arm’s length pricing position that does not survive scrutiny, a withholding tax rate that ignored the TRC requirement – each creates exposure that surfaces 2-3 years later during scrutiny. This service is the international tax workstream for Indian groups with outbound investments, foreign-owned Indian subsidiaries, and individuals with cross-border exposure.
Strategic Fit: Is this right for you?
Foreign-Owned Indian Subsidiary
With parent-subsidiary intercompany transactions.
Indian Holdcos Abroad
With foreign subsidiaries needing outbound TP, CFC, FTC.
Cross-Border Receipts
Indian companies receiving payments from foreign customers.
GCCs / SaaS Subsidiaries
Of foreign parents in India needing TP framework.
Cross-Border Payments
Indian companies making payments to foreign vendors (Sec 195 TDS).
Family Office / HNI
With international investments and structures.
Final Deliverables Checklist
Everything you receive at the end of the engagement.
- TP study (Local File) with functional analysis and benchmarking
- Form 3CEB signed and UDIN-tagged
- Master File and CbCR filings where applicable
- Withholding tax memo (rate determination, DTAA, Form 10F + TRC)
- Equalisation Levy compliance
- PE analysis memo
- POEM analysis for foreign-incorporated group entities
- Foreign tax credit (FTC) claim under Rule 128
- Scrutiny representation (assessment, DRP, ITAT)
UNDERSTANDING THE FOUR PILLARS
Tax Residency + Source
Sec 6 + Sec 9 Income-tax. POEM brings foreign-incorporated companies into Indian residency if Indian management control is substantive.
Permanent Establishment
Fixed place / dependent agent / service PE / construction PE / server PE. PE analysis under relevant DTAA is foundational.
Transfer Pricing
Sec 92 – 92F. Five OECD methods (CUP, RPM, CPM, PSM, TNMM) under Rule 10B. Form 3CEB filed by 31 October. Master File / CbCR for large groups.
The Engagement Lifecycle
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Transparent Pricing Structure
Statutory & Third-Party Costs – pass-through, NOT our fees
These are paid directly to government departments, certifying authorities, and banks. They are not VRS professional fees.
- Form 3CEB filing: nil government fee
- Master File (Form 3CEAA + 3CEAB): nil government fee
- CbCR (Form 3CEAD): nil government fee
- Comparables database access (Capitaline / Prowess): commercial subscription, VRS bears
- TRC / Form 10F obtained from foreign jurisdiction - foreign jurisdiction fees
Engagement & Fees
We handle cross-border tax end-to-end — DTAA positions, foreign tax credit (Form 67), and transfer-pricing study and Form 3CEB — scoped to your structure during an initial scoping call.
Fees are confirmed per engagement after the scoping call, based on the scope and complexity involved. You receive a clear, written quote before any work begins — no hidden charges.
Quoted per Engagement
The final quote depends on the scope, volume, and statutory complexity of your specific engagement.
Frequently Asked Questions
Do we need a TP study if our intercompany transactions are small?
Yes. Indian TP applies to every international transaction with an associated enterprise – no minimum threshold. Even a single intercompany invoice attracts TP documentation.
What is the best TP method?
TNMM is most commonly used and easiest to defend with publicly available comparable data. ‘Best method’ under Rule 10B(2) depends on transaction, data reliability, and functional profile.
Our foreign parent wants a simple low-margin structure. Is that defensible?
Depends on functional profile. Low-risk captive service provider – 10-15% cost+ defensible. Meaningful risk-taking / IP development requires higher margin. We do not sign off where substance does not match position.
We use Mauritius / Singapore / Netherlands - is treaty shopping still viable?
Post MLI and Principal Purpose Test (PPT), pure treaty shopping is materially harder. Substance-based structures still work case by case.
Equalisation Levy or Significant Economic Presence - which applies?
EL 2.0 applies where Indian payer makes payments to specified non-resident e-commerce operator. SEP creates notional PE for non-resident based on revenue / user thresholds. Both can apply together.
We have an APA in place. Do you still do TP work for us?
Yes – APA covers specific transactions over its tenure. Ongoing TP documentation, Form 3CEB, and non-APA transaction compliance continue. We also support APA renewal.