Transfer pricing – Joint Working Group recommendations
The Joint Working Group with senior officers from the income tax and customs departments was constituted to study transfer pricing (price adjusted in related party transactions) in the context of income tax and customs. The committee recommended that
1. Cooperation and coordination between the two departments on transfer pricing is absolutely essential. For this coordination meetings are to be organized.
2. Information has to be exchanged on “need to know” basis.
3. Officers have to be properly trained.
Based on the recommendations, CBEC has decided that
a. Bi-monthly meetings are to be held at Delhi, Mumbai, Chennai and Kolkotta and the minutes to be forwarded to DG, International Taxation and DG, Valuation.
b. Half-yearly meetings to be held with DG International Taxation, DG Valuation and Chief Commissioner of customs and minutes to be forwarded to the respective Members of the CBEC and CBDT.
c. National Academy of Direct Taxes (NADT) and National Academy of Customs, Excise and Narcotics (NACEN) shall develop and organize training programmes on transfer pricing.
d. Exchange of information in specific cases to be done and nodal officers to be nominated.
Circular No. , Dated May 8, 2007