Insights on US–India tax
Our tax lead writes about where the two countries' files disagree, and the smaller flows that go unreported.
There is no minimum value: a single reimbursement is enough. (read where we wrote it)
5Pieces from our team on cross-border tax
Read the tax guides in full
Currency and cross-border business
Pricing the work
What does our tax lead see go wrong most often?
- CA Mallavarjalla MounikaLeaving an international transaction out of the report counts as misreporting, so the 200% rate can apply.
From "Form 3CEB: the transfer pricing report your Indian subsidiary files every year"
- CA Mallavarjalla MounikaPenalties start at $10,000 per form per year even with no tax due, and a missing form can keep the whole return open to assessment.
From "Form 5471 for US companies with an Indian subsidiary"
- CA Mallavarjalla MounikaWhere the amounts are large, a bilateral advance pricing agreement can fix the method for up to five years.
From "US–India transfer pricing: how to price the work your India team does"
- CA Mallavarjalla MounikaIndian books in rupees, for a year to 31 March, are where the Form 5471 work starts.
From "Form 5471 for US companies with an Indian subsidiary"
- Is our markup still right?
- Do Form 3CEB and Form 5471 agree?
- What does a true-up change?