Kunj Vaidya, Leader, Transfer Pricing Dispute Resolution
Expectations from the Union Budget 2015 also included citizen aspirations that the nation, in its current state, is not ready to afford. The Finance Minister has effectively laid down all that was attainable and has left the rest to be covered in the years to come. While this gap has not appeased tax pundits, it has managed to resonate with the economists and corporates.
While there may not be any big bang reforms; there are no downsides either. The Budget has focussed on making the mortar run deep in order to facilitate future growth and development. The government has emphasised improvements to tax administration and easing the cost of doing business over short-term fiscal incentives. As for the most litigated tax matter in India, transfer pricing, the following wishes of corporates as highlighted in the recently launched India Transfer Pricing Survey report, remain unanswered:
- Risk-based selection of cases for TP audit
- Clarification on the application of economic adjustments
- Retrospective application of the use of multiple-year data for benchmarking
- Rationalising requirements under the Companies Act as well as the SEBI Listing Guidelines
That said, the government has deftly kept the promise of Acche Din alive by providing a glimpse of its repertoire. And with stable governance over the next four years, we hope to see tangible results.