India Reveals Plans to Expand Transfer Pricing Safe Harbor Rules

India plans to expand the scope of its safe harbor rules for transfer pricing, partly to help reduce disputes between companies and the tax office.

“With a view to reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbor rules and make them more attractive,” Finance Minister Nirmala Sitharaman said while presenting the federal budget Tuesday.

A safe harbor is a mechanism companies can use to help avoid disputes with the tax department on how they value their intercompany transactions.

The safe harbor applies to the provision of services such as research ...