Transfer Pricing Audit · Panaji, Goa
Facing a Transfer Pricing Officer notice? We provide expert TPO audit defence — notice response, ALP substantiation, economic analysis, and pre-DRP negotiation by qualified Chartered Accountants in Goa.
Overview
When the Assessing Officer refers a case to the Transfer Pricing Officer (TPO) under Section 92CA, the TPO has the power to independently determine the arm's length price for each reported international transaction. The TPO can call for information, visit business premises, and propose upward adjustments running into crores — with a draft assessment order following the TPO's order.
A TPO audit is not a tax audit to be survived passively — it is an adversarial proceeding where the quality of documentation, the strength of the economic analysis, and the experience of the representative directly affect the outcome. Our TP documentation service ensures the evidence is audit-ready before the notice arrives.
What we cover
From the initial notice to the TPO order — robust representation at every step.
Talk to our CA →Reviewing the TPO notice, identifying the transactions under scrutiny, assessing the risk of adjustment, and formulating a response strategy before the first submission deadline.
Compiling the complete TP documentation package — functional analysis, comparables, method justification, financial data — in the format the TPO expects, reducing queries and delays.
Analysing the TPO's proposed comparables, identifying grounds for rejection (different functions, geography, size, or product mix), and preparing rebuttal submissions with fresh economic analysis.
Drafting detailed written submissions with case law, OECD Guidelines, and judicial precedents; attending and arguing before the TPO during oral hearing.
Engaging in pre-order discussions with the TPO to narrow the adjustment, propose alternative ALPs, or seek partial acceptance of the taxpayer's position before the formal TPO order crystallises.
Once the TPO order is passed and the AO issues the draft assessment, advising whether to file objections before the DRP (within 30 days) or appeal to CIT(A) — and preparing the chosen forum's submissions.
The TPO audit process
Assessing Officer refers the case to TPO under Section 92CA before passing the assessment order.
TPO calls for TP documentation, financial data, comparable analysis, and may request additional information over multiple rounds.
TPO passes an order determining ALP — often with upward adjustments. This feeds into the draft assessment order.
Taxpayer files objections before DRP (30 days) or waits for final order and appeals to CIT(A). ITAT is the next appellate level.
Frequently asked questions
A case is referred to the TPO by the Assessing Officer under Section 92CA when the AO believes a determination of ALP is necessary. High-risk triggers include: large intercompany transactions; significant losses in the Indian entity despite group profitability; royalty payments; management fee charges; related-party loans at non-market rates; and discrepancies between the reported ALP and the TPO's initial analysis.
The TPO can independently determine ALP for every reported international transaction, call for any information or document, issue summons for witnesses, inspect business premises, and propose adjustments irrespective of the method used by the taxpayer. The TPO's order is binding on the Assessing Officer, who must incorporate the adjustment in the draft assessment order.
Yes. After amendments in 2012, the TPO can examine and adjust any international transaction — not just those reported in Form 3CEB — if the TPO believes a transaction was not reported or was incorrectly characterised. This makes complete and accurate Form 3CEB reporting essential, since omissions can lead to penalty and examination of additional transactions.
The TPO must pass the TP order within 60 days before the limitation date for the assessment (typically 60 months from the end of the assessment year). In practice, TPO proceedings can last 12–24 months through multiple rounds of information requests, hearings, and submissions before the final order is passed.
The TPO's order is sent to the Assessing Officer, who issues a draft assessment order incorporating the adjustment. The taxpayer then has 30 days to either accept the draft order or file objections before the Dispute Resolution Panel (DRP). If no DRP objection is filed, the AO passes the final assessment order after 30 days, which can be appealed to CIT(A) and then ITAT.
The TPO must pass the order on determination of ALP at least 60 days before the limitation date for the assessment order. The limitation period for passing a TP assessment order is generally 4 years from the end of the assessment year (or 6 years for cases involving international transactions above ₹50 crore). Extensions are available for DRP or ITAT directions.
Related services
The window for the first TPO submission is narrow. Our qualified CAs in Panaji, Goa will analyse your exposure, assemble the documentation package, and represent you through every round of the audit.