Due to globalization all over the world, various countries interact with each other and join hands for business and commercial activities. Every industry is into imports and exports of products, services and exchange of labor and capital takes place to achieve self sufficiency. Every country has its own taxation policies and procedures. Here comes the role of a consultant who can provide solutions to such intricate laws of varied countries.
FINMART provides consultancy to stressed clients with issues like International Taxation Norms, Sale and Purchase of Properties on global basis, FEMA and RBI Compliances and such other issues. We work closely with our clients, helping them to mitigate risks and grasp opportunities.
FINMART provides advisory on International Tax consequences, Transfer Pricing Issues, Profit Repatriation, Possible Tax Advantages of cross border trading, leasing, financing, or holding companies, DTA (an agreement between two Governments to provide relief to their residents from Double Taxation and for curbing tax evasion) and researching the tax attributes of potential overseas and domestic markets.
Any private or public company or a sovereign entity entering into any kind of international financial transaction is eligible for the services.
The documents needed vary from case to case. Let FINMART understand your needs and assist you in documents requirement.
Transfer prices are the charges made when a company supplies goods, services or finance to another company to which it is related. It is an internationally accepted principle that transactions between related parties (associated enterprises) should be based upon the same terms as between unrelated parties i.e. should be at Arm's Length.
The companies are said to be associated enterprise under the following conditions:
If the particular company is involved directly or indirectly in the management, control, or the capital of the other company.
If any person/persons of the respective company who is/are involved directly or indirectly in the management, control, or the capital of one company is/are involved directly or indirectly in the management, control, or the capital of the other company.
A minimum of 26% shareholding in any of the enterprises is required. Usually one enterprise shall be resident and other shall be non-resident.
Taxpayers having aggregate international transactions below the prescribed threshold of Rs. 1 Crores are relieved from maintaining the prescribed documentation. However, even in these cases, it is crucial that adequate documentation be maintained to substantiate the arm's-length price of international transactions.
A Penalty of 2% of the value of international transaction may be imposed, if the taxpayer fails to maintain prescribed documents or information or report any international transaction which is required to be reported, or furnishes any incorrect information or documents.
Movement of profits earned in business or through investment from any foreign country back to the country of origin is called Profit Repatriation. The investor converts the foreign currency into the currency of one's own country on the respective exchange rate during the settlement time. It is usually resorted to take advantage of currency fluctuation.