TaxTonic Session: Customs Valuation vis-à-vis TP Rules!

Episode Duration:
95 minutes

Episode Background:
'TaxTonic', a new 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.

Speakers:
Mr. Anand Khetan (Roedl & Partner India) & Mr. Saurabh Dhadphale (MSKB & Associates LLP (BDO International Affiliate Firm))

Moderator:
Mr. Sachin Sastakar (Chartered Accountant)

What shall the episode cover?
As India marches towards a $5 trillion economy, the rise and complexity in international trade and commerce is inevitable. The Government’s policy initiatives have facilitated the ease of doing business and India is gradually becoming a manufacturing hub by attracting MNCs to set up their units in India. In such a trade scenario, transactions with related parties assume immense significance as the regulatory and compliance mechanism is only going to get cumbersome. India adopted the ‘Agreement to Implement Article VII of GATT’ (GATT Valuation Code) in 1988 that gave birth to Valuation Rules under the Customs Act, 1962. Income-tax Act, 1961 also has a devoted chapter on Transfer Pricing wherein extant rules have been prescribed for transactions with related parties to ensure India's fair share of tax. While India has every right to collect the taxes, a balance may have to be struck between two government agencies and valuation rules to attain uniformity.

Taxsutra presents the next episode of TaxTonic to analyse and understand the intricacies of Customs Valuation Rules vis-à-vis Transfer Pricing Rules with an endeavour to reconcile them. This episode is largely focused on:

1. Convergence and Divergence between the two Valuation Rules
2. Comparative impact of Special Valuation Branch and Advance Pricing Agreements
3. Dealing with losses of the set-up period
4. Import of goods & services
5. Marketing Intangibles
6. Royalty Payments