Thomson’s Decoding Transfer Pricing for Selling (Distribution and Agency) Functions by Rahul K. Mitra – 1st Edition 2021

Description

One of the most litigated areas around selling functions, both internationally and particularly in India, is whether a licensee of trademark contributes to unique and valuable marketing intangibles through the intensity of its selling functions; and if so, how should arm’s length rewards be assigned to it. Decoding Transfer Pricing for Selling (Distribution and Agency) Functions aims to carry out advanced statistical analysis of selected empirical data to ascertain whether a licensee of trademark may be said to contribute to unique marketing intangibles. The book also focuses on identifying sophisticated economic adjustments, if any, to arrive at feasible results for measuring the impact of such unique marketing intangibles under the conventional transfer pricing methods of ‘one sided’ testing or adopt the profit split method as a better recourse. The literature available on the above topics around the world, be it in guidelines issued by the OECD, United Nations or Revenue Administrations of other countries or in judicial pronouncements, only provide theoretical answers. None of the guidelines have ever provided practical solutions through advanced statistical analysis of selected empirical data. The theoretical guidelines often confuse readers and tax administrators on the proper application of transfer pricing techniques, particularly when transfer pricing is not an exact science. The purpose of Decoding Transfer Pricing for Selling (Distribution and Agency) Functions is to provide a practical solution to the above issues through Rahul Mitra’s professional experience spanning a couple of decades. The book also addresses several related issues particularly harmonisation of transfer pricing and customs duty regulations in the context of distributors, which, much against popular misconceptions or apprehensions, happen in reality.

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