International taxation and transfer pricing
International Taxation and Transfer Pricing Services in India
Dhee Group provides transfer pricing services in India and international tax advice for Indian subsidiaries of foreign groups, Indian companies with overseas entities, and foreign companies earning income from India. From our office in JP Nagar, Bengaluru, we help you price, document and report cross-border transactions correctly, and understand how Indian tax law and tax treaties apply to your business.
Transfer pricing
Transfer Pricing Services
When a business in India transacts with related parties overseas — buying goods, providing services, paying royalties, lending or borrowing — Indian tax law requires those transactions to be priced at arm’s length, as if the parties were independent. Getting this wrong can lead to adjustments, interest and penalties during assessment.
Transfer Pricing Documentation
Businesses with international transactions above prescribed thresholds must maintain transfer pricing documentation each year. We prepare the transfer pricing study report, covering the group structure, functions performed, assets used and risks assumed by each party, the method selected and the analysis supporting the arm’s length price.
Transfer Pricing Benchmarking Services
We identify comparable companies or transactions, apply the most appropriate method — such as the transactional net margin method or comparable uncontrolled price method — and document the reasons for each choice, so the analysis can withstand review.
Transfer Pricing Compliance
We prepare the information required for the accountant’s report on international transactions, track filing deadlines, and advise larger groups on master file and country-by-country reporting obligations where they apply.
Policy Design and Advance Pricing Agreements
For new arrangements, we help you design an intercompany pricing policy before transactions begin. Where long-term certainty is valuable, we can explain options such as safe harbour rules and advance pricing agreements with the tax authorities.
International tax
International Taxation Services
Taxation of Foreign Companies in India
A foreign company is taxed in India on income that arises or is received in India, including through a branch, project office or other permanent establishment. As foreign company tax consultants, we help you understand whether your activities create a taxable presence, how different types of income are taxed, and what filings are required.
Double Tax Avoidance Agreements
India has tax treaties, known as Double Tax Avoidance Agreements (DTAAs), with many countries; their texts are published by the Income Tax Department. A treaty may reduce tax on dividends, interest, royalties or fees for technical services, but claiming benefits usually requires a tax residency certificate, prescribed declarations and genuine commercial substance. We assess eligibility case by case rather than assuming treaty relief applies.
Cross-Border Tax Advisory
Our cross-border tax advisory covers withholding tax on payments to non-residents, foreign tax credits for income taxed abroad, tax implications of overseas investments by Indian businesses, and structuring of new cross-border arrangements. Filings are made through the Income Tax e-filing portal (opens in a new tab).
Who We Help
- Indian subsidiaries of foreign groups with intercompany services, purchases, royalties or loans.
- Indian businesses with overseas subsidiaries or other group entities abroad.
- Foreign companies earning income from India or considering an Indian presence — see our business setup services in India.
How We Work
- Understand the transactions. We map related parties, transaction flows and existing agreements.
- Analyse. We assess functions, risks, methods and treaty positions.
- Document and file. We prepare reports, workings and filings within the due dates.
- Support. We respond to queries during assessment and update analysis as your business changes.
Because transfer pricing data comes from your books, we work closely with our accounting and bookkeeping and tax advisory and compliance teams to keep figures consistent. Tax outcomes depend on facts and on how authorities apply the law, so we explain risks clearly rather than promising specific results.
Group network
Support Across the Dhee Group Network
For businesses with group entities outside India, our India team covers the Indian side and can coordinate with the relevant Dhee Group team abroad, keeping both positions aligned. Visit Dhee Group global.
Questions
Frequently Asked Questions
What is the tax rate for foreign companies in India?
Foreign companies are taxed at rates set by each year’s Finance Act, which differ from domestic company rates. Specific income such as royalties, interest or dividends may be taxed at different rates, and a tax treaty may provide lower rates. We confirm the applicable rate for your income and year.
Is capital gain on the sale of foreign shares taxable in India?
For Indian tax residents, worldwide income is generally taxable in India, including gains on foreign shares. Credit may be available for tax paid abroad, and the assets must be reported in the return. Treatment depends on residential status and holding period.
Do you have international tax consultants in Bangalore?
Yes. Our team is based in Bengaluru and supports clients across India and their overseas group companies.
Next step
Get Clarity on Your Cross-Border Tax Position
Tell us about your group structure and cross-border transactions, and we will suggest a scope for our transfer pricing services. Contact Dhee Group or view all our services.