ABC LIMITED

Questionnaire

1)      Details of the Multinational Group in which assessee enterprise operates along with name, address, legal status and country of tax residence of each of the enterprises comprised in the group.

2)      Name and address of the Parent/group Company with which international transaction entered into.

3)      Tax Residence Certificate of the associated enterprise.

4)      A description of the ownership structure of the Parent/ Group Company with details of shares and other ownership interest held therein by other enterprises.

5)      The nature and terms (including prices) of international transactions entered into with each associated enterprises, details of property transferred or services provided and the quantum and the value of each such transaction.

6)      A description of the functions performed, risk assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transactions.

7)      Record of the transactions entered into with non-associated enterprises along with invoices/bills raised for determining the arm’s length price as well as for comparability analysis.

8)      Global Transfer Pricing Report.(if any)

9)      Sales invoices for comparison of the prices on which goods have been sold to the Indian Branch.

The sales invoice which will be provided to us should be to non-associated person.

10)  A Commission Agency Agreement between Indian Branch and Parent company.

11)   A document/agreement copy should be provided to us to justify the % of sales commission allocated to Indian Co.

12)  Monthwise details of the Export made by the ABC Limited to India during the period 01.04.2009 to 31.03.2010.

13)  Whether any other business activities carried on in India of the same or similar kind as those effected through Branch.

14)  Whether any other Executive and General Administration expenses have been incurred in India or elsewhere for the purpose of the business of Branch.

15)  Whether any payment made to or received from Head Office by way of Royalties, fees or other payments in return for the use of Patents or other rights, or by way of Commission or other charges for specific services performed or for management, by way of interest on monies lent to the Branch.

16)  Please give supportive role of Branch in connection with direct export from Belzium without going through Branch and the apportionment of commission, Branch have earned.

17)  Whether invoice rates in Belzium have any difference with the rates that have been charged from India.

18)  Whether Branch has performed any service to conclude the export order in India.

19)   Provide the comparative invoices which have been issued to the unrelated persons of the same items for transfer pricing purposes.

20)  A record of the economic and market analyses, forecasts, budgets or any other financial estimates prepared by the parent company for the business as a whole and for each division or product separately, which may have a bearing on the international transactions entered into by the parent company.

21)  A record of the uncontrolled transactions taken into account for analyzing their comparability with the international transactions entered into, including a record of the nature, terms and conditions relating to any uncontrolled transactions with third parties which may be of relevance to the pricing of the international transactions.

22)  A description of the methods considered for determining the arm’s length price in relation to each international transaction, the method selected as the most appropriate method along with explanations as to why such method was so selected, and how such method was applied in each case.

23)  A record of the actual working carried out for determining the arm’s length price, including details of the comparable data and financial information used in applying the most appropriate method, and adjustments, if any, which were made to account for differences between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions.

24)  The assumptions, policies and price negotiations, if any, which have critically affected the determination of the arm’s length price.

The above information shall be supported by the authenticated documents, which includes the following:

1) Official publications, reports, studies and data bases from the Government of the country of residence of the associated enterprise, or of any other country;

2) Reports of market research studies carried out and technical publications brought out by institutions of national or international repute;

3) Price publications including stock exchange and commodity market quotations;

4) published accounts and financial statements relating to the business affairs of the associated enterprises;

5) Agreements and contracts entered into with associated enterprises or with unrelated enterprises in respect of transactions similar to the international transactions;

Regards,

CA SHALINI GOYAL