<p>The government, on Thursday, announced setting up an Advisory Group on International Taxation and Transfer Pricing, which is to be headed by Revenue Secretary R S Gujral.<br /><br /></p>.<p>The Advisory Group has been constituted by the Central Board of Direct Taxes, the Finance Ministry said in a statement.<br /><br />Besides CBDT Chairman Laxman Das, Nasscom President Som Mittal, P Y Gurav of CII, Dinesh Kanabar of Ficci, Ved Jain of Assocham, Mahesh P Sarda of ICAI, T P Ostwal of IFA and Mukesh Butani of ICC have been named as members of the Board.<br /><br />The transfer pricing mechanism is often misused by multinational companies to transfer profits to their subsidaries in low tax countries.<br /><br />A report of Global Financial Integrity says that major channel for illicit outflow is transfer of funds through mispricing which accounts for 77.6 per cent of total illicit outflows.<br /><br />According to finance ministry , the existing transfer pricing provisions of the government, “are not detailed provisions as compared to transfer pricing provisions of developed countries”.<br /><br />It was felt that there is a need to upgrade these transfer pricing provisions to meet the challenges of growing intangible economy and various complex cost sharing arrangements, a document of the ministry said. A committee by DGIT was constituted to look into the issue.</p>
<p>The government, on Thursday, announced setting up an Advisory Group on International Taxation and Transfer Pricing, which is to be headed by Revenue Secretary R S Gujral.<br /><br /></p>.<p>The Advisory Group has been constituted by the Central Board of Direct Taxes, the Finance Ministry said in a statement.<br /><br />Besides CBDT Chairman Laxman Das, Nasscom President Som Mittal, P Y Gurav of CII, Dinesh Kanabar of Ficci, Ved Jain of Assocham, Mahesh P Sarda of ICAI, T P Ostwal of IFA and Mukesh Butani of ICC have been named as members of the Board.<br /><br />The transfer pricing mechanism is often misused by multinational companies to transfer profits to their subsidaries in low tax countries.<br /><br />A report of Global Financial Integrity says that major channel for illicit outflow is transfer of funds through mispricing which accounts for 77.6 per cent of total illicit outflows.<br /><br />According to finance ministry , the existing transfer pricing provisions of the government, “are not detailed provisions as compared to transfer pricing provisions of developed countries”.<br /><br />It was felt that there is a need to upgrade these transfer pricing provisions to meet the challenges of growing intangible economy and various complex cost sharing arrangements, a document of the ministry said. A committee by DGIT was constituted to look into the issue.</p>