The Role of Human Resources in New Transfer Pricing Regime

AIMS Journal of Management, Vol. 2, No. 1 July 2016, pp. 59-69, ISSN: 2395-6852 Association of Indian Management Schools, Hyderabad.

11 Pages Posted: 3 Oct 2016

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management; AIIM - Ahmedabad; SPM - PDPU

Upinder Dhar

Shri Vaishnav Vidyapeeth Vishwavidyalaya

Date Written: July 1, 2016

Abstract

Introduced in 2001, transfer pricing (TP) rules in India have undergone a sea change and now with the inclusion of advance pricing agreements (APAs), safe harbour rules (SHRs) and more recent rules such as APA rollback, etc. the new TP regime is aimed to reduce litigations, provide more transparency and attract FDI into the country. However, one of the major concern in this area is the lack of human resources, both in terms of number as well as the capabilities of available manpower for both sides viz. the tax authority and the tax payers (MNCs) to deal with this subject efficiently and the gap between the demand and supply of trained and skilled officers/executives has widen significantly and is growing further. The new TP regime thus, needs more trained/skilled human resources than ever before, if the country has to provide an efficient TP regime. In this background this paper first attempt to describe the relevant concepts of TP and then highlights the significance of human resources to turn the new TP system an efficient one in the global arena, not only to reduce the litigations, but also to attract more foreign technology and FDI into the country.

Keywords: Transfer Pricing, Advance Pricing Agreements, Safe Harbour Rules, International Transfer Pricing, FDI, Arm’s Length Pricing, MNCs

JEL Classification: E24, E62, F2, F4, F21, F23, H2, H26, H32, H32, H87, J44, L1, L2

Suggested Citation

Chugan, Pawan Kumar and Dhar, Upinder, The Role of Human Resources in New Transfer Pricing Regime (July 1, 2016). AIMS Journal of Management, Vol. 2, No. 1 July 2016, pp. 59-69, ISSN: 2395-6852 Association of Indian Management Schools, Hyderabad., Available at SSRN: https://ssrn.com/abstract=2846639

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, GUJARAT 382481
India

HOME PAGE: http://pawanchugan.wordpress.com

AIIM - Ahmedabad ( email )

Adani Shantigram, Vaishno Devi Circle
S.G. Highway
Ahmedabad, Gujarat 382421
India

HOME PAGE: http://pawanchugan.wordpress.com/

SPM - PDPU ( email )

Raisan
Gandhinagar, Gujarat 382007
India

HOME PAGE: http://pawanchugan.wordpress.com/

Upinder Dhar

Shri Vaishnav Vidyapeeth Vishwavidyalaya ( email )

Sanwer Road
Indore-Ujjain Road
Indore, M.P.
India
+91-98290-89526 (Phone)

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