Transfer pricing

In other words, transfer pricing is the price which is paid for goods or services transferred from one unit of an organization to its other units situated in different countries (with exceptions). Transactions subject to Transfer pricing.

There will be impact on other economies eg

India company manufactures a product at 125 and sells to USA company, if the price of outside product is 150, then 25 profit was made. 

Similarly, these transfer pricings are done between divisions and parent companies to maximise profits. Internal pricing is what it is like. They are also subject to currency risk where purchasing goods from India Parent becomes more and expensive when purchasing power parity is more, the PARENTS receivables will be expensive to the USA company. Then it will choose next best option.

Can we have proper guidance on working by USA laws. paid consultancy can also be considered.

I am not an expert but lots of resources available on line about transfer pricing laws. I found this somewhat relevant, an agreement between India - US

notification_37_2019.pdf (incometaxindia.gov.in)

Need proper consultant whi can handle the us taxation 

You can hire consultant if you want but do proper research before hiring they are best or not

Hi Anil, Every transaction entered by an Indian company with it's foreign related party (AE) is required to be determined in line with arm's length principle as per Section 92 of the Income-tax Act, 1961. The Indian company is required to comply with the following:

1. Furnish Accountant report in Form 3CEB as per Section 92E

2. Maintain Transfer pricing documentation as per Section 92D.

For any further queries, you can connect on cabhandaritaxservices @ gmail.com or 9022579441.