Tuesday, June 15, 2010

INDIA-US TAX AUTHORITIES REACH SETTLEMENT ON TRANSFER PRICING ISSUE

The US and Indian competent tax authorities have reached a negotiated settlement on transfer pricing
dispute in respect of certain captive software development units for the financial year 2004-05. The
settlement has been reached through the mutual agreement procedure (MAP) mechanism provided
in the Indo-US Double Taxation Avoidance Agreement (DTAA). Both the sides have agreed for
full cost mark-up of 17.5 per cent for the financial year 2004-05.

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