TP Audit Mandatory

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shivakumar (Querist)
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22 March 2022 Good day, Sir/Madame. We are a manpower consultancy firm based in India (one entity) that provides services to a US corporation (another entity) (under the name of an Indian director's spouse) for the purpose of hiring C2C, W2 and 1099 employees. Is TP Audit required for Income Tax Audit or for any other reason? or just reach an agreement between two organisations and set a percentage as a margin on Indian expenses in order to boost the invoice to the US company. Could you please make a recommendation for us?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 March 2022 Just reach an agreement between two organisations and set a percentage as a margin on Indian expenses in order to boost the invoice to the US company.
Transfer pricing audit applicable in addition to income tax audit when such transaction exceed 1 crore.