OECD Proposals to Have Impact on Transfer Pricing in India: Experts

New Delhi: Once implemented, the measures proposed by the Organisation for Economic Cooperation and Development (OECD) to curb tax avoidance activities would have "far reaching implications" in India's transfer pricing landscape as well as a significant impact on US multinationals with overseas operations, according to experts.

Paris-based think tank OECD, which sets global tax standards, published seven-point BEPS (base erosion and profit sharing) recommendations on Tuesday. (Read more)

"The BEPS release on Intangibles and transfer pricing documentation will have far reaching implications in the transfer pricing landscape in India and around the globe," said Rohan K Phatarphekar, partner and national leader-global transfer pricing services at KPMG in India.

Companies having international operations would have to work towards not only adhering to compliance obligations but also review the operating structures in various jurisdictions, he said in a statement.

The proposals have been prepared after extensive consultations with various stakeholders including G20 nations.

In a separate statement, Manal Corwin, national leader of international tax at KPMG LLP, said that if adopted by key OECD member countries and observers as expected, the measures would have a significant impact on US multinationals with overseas operations.

Ms Corwin, who had also served as deputy assistant secretary for tax policy for international tax affairs at the US Treasury Department, said the impact would not only include changes in compliance obligations, but could directly affect current operating structures in meaningful ways.