customs implication on transfer pricing adjustment india

[Sudhir M]

What are the customs implications of the price paid to a foreign entity from which goods are imported, in the event of a retrospective transfer pricing adjustment at year-end? Do we need to pay customs duty.

AI Summary

Retrospective Transfer Pricing Adjustments Affect SVB Assessment for Related Parties, Per Customs Circular No. 05/2016-Customs. A query was raised about the customs implications of retrospective transfer pricing adjustments in India, specifically whether customs duty needs to be paid on the price paid to a foreign entity for imported goods. A response indicated that such adjustments affect the Special Valuation Branch (SVB) Assessment if dealing with related parties, as per Customs Circular No. 05/2016-Customs. It is advised to inform the jurisdictional customs authorities about this development and consult with a customs broker to assess the impact on the valuation of imported goods.