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Transfer Pricing FAQ India
Common questions on TP study and Form 3CEB

Transfer pricing is a related-party pricing problem with documentation, benchmarking and reporting deadlines.

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Startup Registrations, FSSAI & GEM Slabs

Starting and operating a business in India requires several basic licenses, registrations, and certifications depending on the industry.

Registration categoryCurrent verified positionKey requirement
FSSAI RegistrationMandatory food safety license for food business operators (FBOs).Basic registration for turnover < 12L; State license for 12L-20Cr; Central license for >20Cr.
GEM Portal RegistrationGovernment e-Marketplace registration to bid for government contracts.Requires PAN, Aadhaar, bank details, and active company/proprietorship KYC.
ISO CertificationStandardization certificate verifying internal quality and processes (e.g. ISO 9001).Increases brand value, tender eligibility, and process controls.
PAN & TAN RegistrationMandatory tax identification numbers for individuals/entities.TAN is required for all entities responsible for deducting TDS.
Important general checks

What a serious business consultant should verify

  • Trade License: Issued by local municipal corporations to authorize commercial operations in a specific location.
  • Barcode Registration: Required for retail products to track inventory and display pricing; issued by GS1 India.
  • Proprietorship Setup: Easiest business form, requires only two business registrations (like GST and MSME Udyam) to open a current bank account.
  • FSSAI compliance: Food safety license must be printed on all packaging labels with the FSSAI logo.
Required documentation

Documents for general business setup

  • PAN Card and Aadhaar card of promoters.
  • Office address proof (rent agreement or electricity bill with NOC).
  • Bank account details (cancelled cheque).
  • Business constitution certificates (if company/LLP).
Official fact-check status

Transfer Pricing FAQ India: year and source check

Last fact-checked: 18 June 2026.

Direct and indirect tax laws, corporate filings, and compliance rules are subject to change by CBIC, MCA, EPFO, and RBI notifications. Always verify circulars before executing a transaction.

Use official government portals (such as GST portal, MCA V3, e-filing portal, and TRACES) first. Articles and competitor calculators should be treated as guidance, not legal advice.

Questions people ask

FAQs

What is the FSSAI license threshold for a central license?

FSSAI Central License is mandatory for food business operators with an annual turnover exceeding Rs. 20 Crore, or for importers, exporters, and large-scale manufacturers.

When is a TAN registration mandatory?

A TAN (Tax Deduction and Collection Account Number) is mandatory under Section 203A for all individuals and business entities who are responsible for deducting or collecting tax at source (TDS/TCS).

What is the difference between an ISO 9001 and ISO 27001 certificate?

ISO 9001 certifies the Quality Management System (QMS) of a business, while ISO 27001 certifies the Information Security Management System (ISMS) to protect digital data.

Questions People Ask

Frequently Asked Questions

1. What is the primary regulatory or legal framework governing Transfer Pricing FAQ India?

Transfer Pricing FAQ India is governed by specific Indian commercial laws and regulatory bodies. For example, cross-border or foreign exchange matters are governed by the RBI under FEMA, trade and import/export issues fall under the Customs Act and DGFT, corporate compliance under MCA, and contracts/agreements under the Indian Contract Act.

2. What are the key compliance requirements associated with Transfer Pricing FAQ India?

Compliance requirements for Transfer Pricing FAQ India depend on the transactions involved. For instance, LRS remittances require submission of Form A2 to authorized dealer banks; import/export operations require IEC registration and Shipping Bills/Bills of Entry on ICEGATE; and legal contracts require correct stamp duty and execution clauses.

3. What is the role of FEMA in transactions related to Transfer Pricing FAQ India?

FEMA (Foreign Exchange Management Act) regulates all inbound and outbound foreign exchange transactions, external trade, and payments in India. If Transfer Pricing FAQ India involves foreign investment, NRI accounts, or outward remittances, it must strictly comply with FEMA rules and RBI directives.

4. What is the Liberalised Remittance Scheme (LRS)?

LRS is a scheme by the Reserve Bank of India (RBI) that allows resident individuals to freely remit up to USD 250,000 per financial year for permitted current or capital account transactions (like travel, education, medical, gifts, or investments).

5. What is the difference between a resident and a non-resident under FEMA?

Under FEMA, residency is based on the intention and duration of stay (usually staying in India for more than 182 days in the preceding FY for employment, business, or indefinite stay). It differs from the Income Tax Act definition.

6. What is Basic Customs Duty (BCD)?

BCD is the primary tax levied on goods imported into India under the Customs Act, 1962. It is calculated as a percentage of the assessable value of the imported goods and varies based on the product classification (HSN code).

7. What is Transfer Pricing? Why is it regulated?

Transfer Pricing refers to the pricing of transactions between related enterprises (associates). It is regulated to ensure that transactions are conducted at 'arm's length price' (market value), preventing companies from shifting profits to low-tax jurisdictions.

8. What is an Advance Pricing Agreement (APA)?

An APA is an agreement between a taxpayer and the CBDT that determines the transfer pricing methodology and arm's length price for future transactions for a specified period (up to 5 years), providing tax certainty.

9. What is the OIDAR rule under GST?

OIDAR (Online Information and Database Access or Retrieval) services are services delivered over the internet (like cloud services, digital ads, streaming, e-books). Foreign OIDAR providers supplying to unregistered Indian recipients must register and pay GST in India.

10. What is a Shareholder Agreement (SHA)?

An SHA is a contract among a company's shareholders that defines their rights, duties, privileges, share transfer restrictions, dispute resolution mechanisms, board representation, and company voting rules.

11. What is a Non-Disclosure Agreement (NDA)?

An NDA is a legal contract between two or more parties that restricts the sharing of confidential business information, trade secrets, intellectual property, or proprietary data with third parties.

12. What is the maximum limit for carrying physical foreign currency out of India?

Resident individuals traveling abroad can carry physical foreign currency notes up to USD 3,000 per trip. The remaining LRS limit can be carried in the form of forex cards, traveler's cheques, or bank drafts.

13. What is a Customs Bonded Warehouse?

A bonded warehouse is a secured facility licensed by customs authorities where imported goods can be stored without paying customs duty. The duty is paid only when the goods are cleared for domestic consumption.

14. What is the role of NCLT (National Company Law Tribunal)?

The NCLT is a quasi-judicial body in India that adjudicates issues relating to Indian companies, including insolvency proceedings (IBC), mergers and acquisitions, oppression and mismanagement, and winding up of companies.

15. What is the penalty for violating FEMA regulations?

If a FEMA violation is quantifiable, the penalty can be up to three times the amount involved. If not quantifiable, the penalty can be up to ₹2 lakh. A continuous daily penalty can also be levied.

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