Transfer Pricing – IT & ITeS – MAP – US pushes for 12-13% Margin Levels

A joint effort by India and the US to amicably decide on their respective shares of taxes from IT and ITeS companies operating in both countries is taking place. While New Delhi is unwilling to accept the margins made by India-registered IT companies from services rendered to related parties in the US in certain past cases to be anything less than 18%, the US tax authorities want India to agree to a much lower rate of 12-13%.