India Tax & Compliance

What is Transfer Pricing?

Name: Infonoxe Technologies
Rating: 5.0

Transfer Pricing: Transfer Pricing refers to the pricing of goods, services, or intellectual property exchanged between related parties (e.g., parent company and subsidiary) to ensure arm's-length transactions for tax purposes.

Transfer Pricing in India

Indian transfer pricing rules under the Income Tax Act (Sections 92–92F) require related-party transactions (RPTs) to be priced at arm's length. Companies with international RPTs exceeding ₹1 Cr must file Form 3CEB (Transfer Pricing Report) and maintain contemporaneous documentation.

Transfer Pricing with ERP

ERPNext's inter-company transaction module facilitates pricing of intercompany sales and purchases. Use Accounting Dimensions to tag related-party transactions separately. Export the transaction data to the TP documentation team and auditors. The Inter-Company Journal Entry maintains records for elimination in consolidation.

Need help with Transfer Pricing?

Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.

Learn More →