Taxsutra & Wolters Kluwer Unveil TP Maestro Rahul Mitra's Transfer Pricing Book!

Episode Duration:
65 minutes

Episode Background:
Ever since the Government of India formally introduced regulations around compliance and assessments in the matter of cross-border Transfer Pricing in 2001, albeit transfer pricing, as a subject had been part of the income tax regulations of India for more than eighty years, the question of how one may apply the principles of transfer pricing for entities, which face the market in the capacity of licensees of trademarks, namely distributors and licensed manufacturers, has been an extremely complex one. The subject has seen significant disputes and litigation across the world, particularly in India, surrounding the issue of marketing intangibles. Further, another important model of selling functions, namely agency, has been a major source of litigation on the issue of attribution of profits to dependent agency permanent establishments of non-resident enterprises in source jurisdictions.

What shall the episode cover?
Against this backdrop, Taxsutra in association with Wolters Kluwer has hosted an exclusive virtual book launch event to unveil the book titled, “Decoding Transfer Pricing for Selling Functions”, covering “Practical Solutions for Marketing Intangibles and Berry Ratio”, authored by renowned Transfer Pricing expert, Mr. Rahul Mitra. In this virtual event, Mr. Mitra has shared with us the book highlights, objective behind this endeavour as also what inspired Mr. Mitra to write the book.  Some of the key questions/ topics dealt with by the author in the said book includes the following :

• Are some of the theories of OECD and United Nations around marketing intangibles sacrosanct?
• The author has tried to counter some of the theories of OECD and the United Nations through arguments based on real-life scenarios, with reference to statistical analysis carried out on selected empirical data.
• Genesis of litigation around marketing intangibles analysed, along with possible solutions.
• Concept of royalties for licensed manufacturers explained in the context of the regulatory regime of India, including providing practical solutions of measuring royalties through the residual profit split method.
• Practical solutions provided on harmonization of Transfer Pricing and customs duty regulations in complex cases, in order to mitigate unwarranted disputes and litigation.
• Concept of attribution of profits to dependent agency Permanent Establishments explained, with reference to Berry Ratio in complex cases.

In the second half of the virtual event, we witness a riveting chat show on “How to Improve the Transfer Pricing Scenario in India”, moderated by Taxsutra Group Editor Arun Giri.