Indian Transfer Pricing | SBC
SBC Advisory · India Transfer Pricing

Indian Transfer
Pricing.

Build a transfer pricing position that works in practice — aligned to your business, supported by evidence and ready for scrutiny.

PlanningImplementationDocumentationControversy
TRUSTED BY MULTINATIONAL GROUPS   •   TRANSFER PRICING EXPERTS   •   COMPREHENSIVE COMPLIANCE   •   END-TO-END DOCUMENTATION   •   LITIGATION SUPPORT   •   ADVANCE PRICING AGREEMENTS   •   SAFE HARBOUR RULES
01 The real issue

Transfer pricing is not just a year-end compliance exercise.

The remuneration model, allocation mechanism, contractual terms and supporting documentation should remain consistent with the functions performed, assets employed and risks assumed by the participating entities.

We connect the commercial arrangement, intercompany agreement, actual conduct, financial outcome and supporting evidence into one coherent position.

Where positions break down

Small inconsistencies
can become large questions.

01Agreement does not reflect actual conduct.
02Pricing policy is not implemented consistently in the accounts.
03Benchmarking relies on weak or outdated comparables.
04Management fees lack clear benefit evidence.
05Persistent losses are not commercially explained.
06Operating-model changes are not evaluated for TP impact.
02 Our capabilities

One transfer pricing agenda.
Multiple points of support.

From initial policy design through compliance, implementation and dispute resolution.

02

Supply Chain &
Transaction Structuring

03

Policy Implementation
& Monitoring

04

Documentation &
Compliance

05

TP Adjustments &
ALP Adherence

06

Global & Group Level
Compliance Management

07

CbCR & BEPS
Risk Assessment

08

Controversy &
Dispute Resolution

09

APA, MAP &
Safe Harbour

10

Cloud & AI Based TP Technology Solutions

Technology-enabled workflows for a more consistent transfer pricing process.

03 Our approach

From business reality
to defensible evidence.

Six connected steps keep the commercial model, policy, numbers and documentation moving together.

01UnderstandBusiness model, transaction flow and value drivers.
02DelineateContractual terms and actual conduct.
03DefineCharacterisation, method and economic analysis.
04TestProfitability, comparables and financial outcome.
05EvidenceAgreements, calculations and commercial records.
06MonitorInvoicing, accounting and year-end review.
04 Who we support

Built for businesses operating across borders.

Our work is designed for finance, tax and business teams managing Indian intercompany arrangements.

Talk to our team
01Indian subsidiaries of multinational groups
02Indian-headquartered groups with overseas operations
03Global Capability Centres and captive service providers
04Manufacturing, distribution and technology businesses
05Groups establishing or restructuring operations in India
06Businesses facing assessments or litigation
07Tax and finance teams requiring specialist project support
08Professional firms seeking technical or white-label support
05 Questions we help resolve

When the answer needs
more than a benchmark.

We examine the commercial and financial story behind the number — not just the number itself.

Is the Indian entity correctly characterised based on its actual functions?
Is the selected cost-plus markup or operating margin supportable?
Should a transaction be evaluated separately or aggregated?
Can internal comparables provide a more reliable analysis?
Are management fees supported by evidence of services and benefits?
Are allocation keys rational, consistent and verifiable?
Should persistent losses be adjusted or commercially explained?
Are intercompany agreements aligned with actual conduct?
Is the business eligible for Safe Harbour?
Would an APA provide better long-term certainty?
Is the company prepared for a TPO information request?
06 Why work with us

Technical rigour.
Commercial clarity.

01

Integrated support

Planning, benchmarking, documentation, assessment and litigation connected through one approach.

02

Transaction-specific analysis

The methodology follows the transaction and evidence — not an automatic template.

03

Commercial understanding

We evaluate how the business operates, creates value and actually interacts.

04

Defensible documentation

Functional analysis, contractual framework, economic analysis and financial outcome tell one story.

05

Implementation focus

Policy is translated into invoicing, accounting entries, reporting and year-end adjustments.

06

Clear communication

Complex issues are structured for management, auditors and tax authorities.

Transfer Pricing Risk Review

See the gaps
before scrutiny does.

A year-end report cannot correct an operating model that was not properly implemented. An early review can identify inconsistencies in agreements, pricing, allocations, segmental accounts and supporting evidence.

EARLY REVIEW

What should we look at?

  • Intercompany transaction profile
  • Existing pricing and documentation
  • Applicable compliance requirements
  • Potential exposure areas
  • Immediate and long-term action points
Request a Risk Review
07 Frequently asked questions

Clear answers to
common TP questions.

Which transactions are covered by Indian transfer pricing provisions?

Indian transfer pricing provisions generally cover international transactions between associated enterprises and specified domestic transactions falling within the applicable statutory scope.

Is benchmarking alone sufficient for transfer pricing compliance?

No. Benchmarking is one component. A defensible position also requires transaction delineation, functional analysis, method selection, reliable financial data, supporting agreements and consistency with actual conduct.

Can multiple intercompany transactions be aggregated?

Transactions may be aggregated where they are closely linked and can be evaluated reliably on a combined basis, supported by the commercial relationship and economic interdependence.

When should an internal comparable be considered?

An internal comparable may be relevant where the tested entity or associated enterprise undertakes a sufficiently comparable transaction with an independent party.

What records should be maintained for intra-group services?

Businesses should retain agreements, invoices, cost workings, allocation keys, correspondence, deliverables and evidence demonstrating the services and commercial benefit.

Should a company consider an APA or Safe Harbour?

The answer depends on transaction nature, value and frequency, functional profile, comparables, expected tax outcome and required certainty.

Start a conversation

Have a transfer pricing
question? Let's discuss it.

Share your requirement with our team. We can discuss your transaction profile, documentation, compliance position or current TP challenge.