# Transfer Pricing Assessment & Disputes

> Transfer pricing audits are referred to a Transfer Pricing Officer, who may propose an adjustment. Eligible taxpayers can object to the draft order before the Dispute Resolution Panel or appeal to the Commissioner (Appeals), then to the Income Tax Appellate Tribunal. Where the other country's tax authority is involved, the Mutual Agreement Procedure under the tax treaty can eliminate double taxation.

Practice: Transfer Pricing — https://www.industax.com/services/transfer-pricing/

Most adjustments turn on comparables selection, working capital and risk adjustments, or the characterisation of the Indian entity. Strong contemporaneous documentation is the best defence.

We prepare submissions, economic analysis and representations with partner counsel for litigation stages.

## Key facts

| Item | Detail |
| --- | --- |
| First stage | Transfer Pricing Officer |
| Alternative forum | Dispute Resolution Panel |
| Appeals | CIT(A), then ITAT |
| Double tax relief | Mutual Agreement Procedure |

## Who needs this

- Companies facing TP adjustments
- Captives with recurring disputes
- Groups seeking MAP relief

## What's included

- Submission drafting
- Economic analysis
- DRP/appeal support
- MAP coordination

## Documents

- TP documentation
- Notices and orders
- Financials and segmentation

## Process

1. **Respond** — TPO queries answered.
2. **Object** — DRP or appeal filed.
3. **Resolve** — Appeal or MAP outcome.

Work that legally requires a advocate is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### Should I choose DRP or the regular appeal route?

DRP is faster and can stay the demand until it decides, but its directions bind the assessing officer only; the regular route allows a fuller appeal. The choice depends on the issues and cash position.

### Can an APA settle past disputes?

Yes, through rollback provisions for up to four earlier years, subject to conditions.

### What is a secondary adjustment?

Where a primary TP adjustment exceeds the threshold and the excess money isn't repatriated to India within the time allowed, it may be treated as a deemed advance with interest.

## Official sources

- Income Tax Department — Transfer Pricing: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/transfer-pricing/tp-assessment-dispute
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.