The concept of Transfer Pricing and Advance Pricing Agreement in India

India being a developing country and one of the biggest economies, has seen an increasing participation of multinational group in economic activities which has resulted in a substantial increase in issues related to transactions entered between two or more enterprises belonging to the same group. This is when the need for transfer pricing regulations emerged in India. Basically transfer pricing is the amount charged by a company when it transfers the goods to other company which may be a multinational company. On the other hand, Indian Advance Pricing Agreement (APA) might not be the most attractive APA regime in terms of the heavy fees the multinationals need to pay at the time of filing application considering the fact that country like Japan and Australia do not charge any filing fees that too being the first countries to implement them.