checklist proforma

8/17/2019 Checklist Proforma

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CHECK LIST FOR TRANSFER PRICING AUDIT

1. Name of the assessee :

2. Assessment ea! :

". F#nan$#a% ea! :

&. '(s#ness Des$!#)t#on :

*. O+ne!sh#) st!($t(!e :

Cate,o!#es - of sha!eho%#n,

/a%(e of #nte!nat#ona%t!ansa$t#ons

0hethe! taheaen3%o+ ta $o(nt!4

Chan,e #nsha!eho%#n,5#f an45 (!#n,

the 4ea!

Total 100%

6. Deta#%s of #nte!nat#ona% t!ansa$t#ons :

S.N. Nat(!e of t!ansa$t#on

7etho (se 84 Assessee

/a%(e of t!ansa$t#on

7etho PLI Re$e#)t Pa#

9. Che$ +hethe! fo%%o+#n, o$(ments3eta#%s f#%e:

i. Copy of Form No. 3CEB Yes/No

ii. Complete set of audited final accounts & auditors report Yes/No

iii. Copy of ta audit report Yes/No

i!. Copy of computation of total income Yes/No

!. "ocumentation under section #$" 1/rules 10"1 & 3' alon( )it* a

copy of transfer pricin( study report

Yes/No

!i. +lo,al transfer pricin( policy of associated enterprises Yes/No

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!ii. Copy of assessment order for t*e last assessment year Yes/No

!iii. Copy of T-s order for t*e last assessment year Yes/No

i. Copies of orders of CT ppeals and TT for earlier years

in!ol!in( ad2udication of transfer pricin( issues

Yes/No

. Copy of (rounds of appeal and statement of facts in respect of appeals' if any'

filed a(ainst t*e last years assessment order

Yes/No

i. f any of t*e associated enterprises if filin( its ta return in ndia' a copy of

t*e return alon( )it* details of its assessment

Yes/No

ii. "etails of all international transactions alon( )it* se(ment)ise ,rea4up of

suc* transactions.

Yes/No

iii. Copies of rele!ant a(reements in respect of international transactions Yes/No

i!. "etails of transactions )it* associated enterprises relatin( to transfer of

tan(i,le or intan(i,le (oods or pro!ision of ser!ices )it*out any consideration'

alon( )it* reasons t*erefore

Yes/No

!. "etails of transfer pricin( ad2ustments' if any' offered in ta return Yes/No

!i. "etails of transactions )it* t*ird parties in ndia or outside ndia alon( )it*

t*eir compara,ility )it* international transactions

Yes/No

!ii. "etails of c*an(es in s*are*oldin( structure' )*et*er directly or indirectly Yes/No

;. Che$ fo! )!of#ta8#%#t4 t!en fo! %ast th!ee 4ea!s :

Item ea! I ea! II ea! III

Turno!er+ross -rofitperatin( -rofitNet -rofit+-/5alesN-/5ales-/5ales-/TC


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1. -/5ales oftested party

$. -/5ales ofcompara,les

3. -/5ales forcompara,lesusin(current yeardata

8. No. ofcompara,les

=PLI ma4 8e $han,e a$$o!#n, to nat(!e of t!ansa$t#on an metho (se>

1?. Che$ the fo%%o+#n, #n ea$h se,ment of teste )a!t4 :

i 9*et*er economic & F7 analysis done ,y tapayer is etensi!e:

ii f not' )*et*er etensi!e economic & F7 analysis *as ,een carried out:

iii 9*et*er data used relates to current financial year:

i! 5i(nificant differences ,et)een F7 analysis s*o)n ,y tapayer and as done ,y T-.

! Economic c*aracteri;ation

!i 9*et*er met*od selected as most appropriate met*od *as ,een critically eamined:

!ii 9*et*er t*e -rofit 6e!el ndicator -6 used *as ,een found appropriate:

!iii s t*ere any c*an(e in met*od selected ,y tapayer:

i s t*ere any c*an(e in -6 selected ,y tapayer:

9*et*er tapayer maintains separate accounts for eac* se(ment:

i f not' *o) se(mental accounts *a!e ,een dra)n for T- purposes:

ii 9*et*er a((re(ation of international transactions in eac* se(ment *as ,een

correctly done:

iii9*et*er correctness of financials of se(ments *as ,een !erified: 9*et*er allocation

4ey used for se(mentation is appropriate:

i! 9*et*er tapayer *as entered into any international transactions ,y )ay of

international set off:

11. Che$ the fo%%o+#n, fo! $om)a!a8%es #n ea$h se,ment :

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i 9*et*er internal compara,les are a!aila,le:

ii 9*et*er t*e searc* parameters used ,y tapayer for searc* of eternal compara,les

are in line )it* economic & F7 analysis of international transactions:

iii 9*et*er etensi!e economic & F7 analysis of compara,les *as ,een done ,y

tapayer:i! f not' )*et*er etensi!e economic & F7 analysis of compara,les *as ,een carried

out ,y T-:

! 9*et*er data used relates to current financial year:

!i 9*et*er t*e correctness of financials of compara,les *as ,een !erified from audited

final accounts:

!iin cases of finally selected compara,les' c*ec4 )*et*er differences ,et)een

uncontrolled transactions & international transactions and ,et)een compara,le

enterprise & tapayer enterprise are li4ely to *a!e material effect on price or profit' as

t*e case may ,e in open mar4et:

!iii f yes' )*et*er appropriate compara,ility ad2ustments *a!e ,een made to

compara,les ,efore suin( t*em for 6- determination:

12. 0hethe! PLI (se fo! $om)a!a8%es #n ea$h se,ment #s same as se%e$te #n

!e%eant se,ment fo! teste )a!t4@

1". 0hethe! a!#at#on 8et+een t!ansfe! )!#$e sho+n 84 ta)a4e! an

a!#thmet#$a% mean ALP fa%%s o(ts#e *- !an,e@

1&. If 4es5 +hethe! aB(stment has 8een mae f!om a!#thmet#$a% mean

ALP@

1*. (ant(m of aB(stments5 #f an4.

16. H#sto!4 of t!ansfe! )!#$#n, aB(stment

19. Rema!s5 #f an4

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