This is the concluding part
of the series of three on accounting standard 22, which deals
with accounting for taxes on income. The first part discussed
that the AS classifies differences in accounting and taxable
income into permanent differences and temporary differences.
If the fees are paid for services
utilised in business carried on in India, irrespective of the
place where services are rendered, it should be deemed to accrue
or arise in India.
With a reduction in Customs
duty and increase in the Indian operations of multinational
corporations, the tax authorities have become alive to the subject
of transfer pricing policies.
The recently introduced Indian
transfer pricing provisions have broadly been modeled based
on internationally accepted principles, though they do differ
on certain key counts.
