Transfer pricing audit

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 I have a question regarding audit of an entity under Transfer Pricing and report under Section 92E. The company which audit is to be done has an associate enterprise in Germany. It is a Travel Service company and German tourists come from its associate enterprise in Germany and this company conducts tour here. Indian Company and German firm are separate entities. The Indian company sends its quotation on cost plus basis to German entity and after negotiation of rates the German firm confirms the tour. After the tour is conducted Indian Company generates Invoice in equivalent US $ and after that payment is received from Germany in US $. Please guide how to conduct this audit & how to make a report under sec 92E. I would be thankful if you could provide a filled report u/s 92E along with the annexures.

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2012 Along with the regular audit, you need to take the audit report of transfer pricing from Chartered Accountant.

Arihanth Jain

Arihanth Jain (Expert)
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02 August 2012 Basics of TPR:
1. Identify the transcation, compare the same with comparable fare/uncontrolled one along with analysis of characteristics in both.
2. Choose best method to determine ALP
3. Compare & see that the transactions are in ALP.
Check all relevant documents to achieve the above steps. Further alot of homework will be required on ALP and obtaining related industry data.

Lastly, based on these facts, can't help on the 92E report with annexures. Need alot more data and analysis. Guess not possible for anyone to just sent one like this.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 It will be helpful if you could provide me audit report u/s 92E of any co. u have audited or a sample by deleting all data or putting other data so that I can get idea how to make a audit report u/s 92E and its annexures