On 10 March 2016, India's Central Board of Direct Taxes issued Instruction No. 3/2016 on guidelines for implementation of transfer pricing provisions. The instruction is to improve the transfer pricing assessment process by settings out when an assessing officer (AO) should refer a case to a transfer pricing officer (TPO) and defines the roles of each. The following is a summary of the instruction.
Cases selected for scrutiny on the basis of transfer pricing risk parameters must be referred …