Service
Intercompany Billing
Intercompany pricing is the GCC's only revenue and a standing transfer pricing audit target. We bill the parent every month at the agreed markup, with the right GST treatment for exports.
What we do
- Services agreement drafted for your counsel's review where none is in place
- Monthly cost-plus invoice at the markup agreed with you
- Correct GST treatment for zero-rated export of services under LUT
- Cost base reconciled to the books before each invoice
- Data and coordination for the transfer pricing study and certification, performed by practising professionals you engage
Why this matters to you
If annual costs are ₹10 crore (about USD 1.1 million) and the markup lands 5 points below the arm's-length level, ₹50 lakh (USD 57,000) of income can be added back: about ₹12.6 lakh (USD 14,300) of tax, before interest and penalties.
Illustrative.
Ready to set up your India finance function?
Tell us about your entity and timeline. We reply within one business day (IST).