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Over the years, SKP has assisted over 1,200 clients from over 45 countries in doing business in India and abroad. Our clients include Fortune 500 companies, multinational corporations, entities listed on global exchanges, private equity/venture capital–owned companies and family-owned businesses. Here are a few examples of our work where we've helped our clients in dealing with the various complexities of doing business in India and abroad.

Transfer pricing policy for a leading international shipping firm

Engagement: Formulating a transfer pricing policy with respect to transactions with its subsidiary (agent of foreign company in India) that minimises the overall taxes of the group

Solution

  • Incidental shipping income not taxable in India (Article 8 of the Tax Treaty)
  • Tax savings of INR 123 million for 3 years and counting

 

Value Delivered

  • Re-characterisation of the Indian agent as a service provider, changing the method of remunerating the agent from commission basis to cost plus basis, and transferring all incidental shipping income to the parent company
  • Minimising taxes in India with respect to the income of the agent