Transfer Pricing & FEMA Advisory

Transfer Pricing & FEMA Advisory in Gandhinagar, Gujarat

Related party transactions across international borders must be priced at arm's length — as if the parties were unrelated. Failure to maintain proper Transfer Pricing (TP) documentation invites adjustments of TP additions to taxable income, compounded by interest and penalties. Simultaneously, any cross-border movement of capital must comply with India's Foreign Exchange Management Act (FEMA). Morry's Business provides integrated Transfer Pricing and FEMA advisory from Gandhinagar, serving clients with operations across India, GIFT City, and international jurisdictions.

Transfer Pricing Documentation and Form 3CEB

Every Indian company or LLP that has entered into international transactions with an associated enterprise (AE) must maintain a TP Study as per Rule 10D of the Income Tax Rules. If the aggregate value of international transactions exceeds ₹1 crore, the taxpayer must also obtain Form 3CEB — a report from a Chartered Accountant certifying the TP documentation. TP documentation comprises a Master File (global group information) and a Local File (entity-level analysis). We prepare both, selecting the appropriate benchmarking method (CUP, RPM, CPM, TNMM, or PSM) and conducting the economic analysis.

Country-by-Country Reporting (CbCR)

Multinational groups with consolidated revenue exceeding ₹5,500 crore (approx. USD 750 million) must file a Country-by-Country Report (CbCR) with the income tax department within 12 months of the financial year end. Indian constituent entities of foreign MNEs must also file CbCR notification. We assist Indian constituent entities in preparing CbCR-compliant master files and coordinating with group treasury teams for data submission.

FEMA: FDI, ODI and Capital Account Transactions

FEMA 1999 regulates all cross-border transactions in India. FDI (inward investment into India) requires FCGPR reporting to the RBI within 30 days of allotment. ODI (outward investment by Indian companies) requires FCTRS reporting for share transfers and annual APR (Annual Performance Report) for overseas subsidiaries. NRI property transactions under Schedule I of FEMA (Non-Debt Instruments) Rules require specific approval or reporting. We handle all RBI FIRMS portal submissions, pricing certifications, and compliance filings.

RBI Compounding for FEMA Violations

Inadvertent FEMA violations — delayed FCGPR or FCTRS reporting, failure to file APRs, or breach of ODI limits — can be regularised through the RBI's compounding mechanism under Section 15 of FEMA. Compounding applications require full disclosure of the contravention, computation of the violation amount, and payment of the compounding fee as calculated by the RBI. We prepare compounding applications for clients based in Gandhinagar, Ahmedabad, and GIFT City — ensuring a complete and transparent disclosure that minimises the compounding penalty assessed by the RBI.