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. [51] ? If non arm's length transactions do not result in a tax advantage, the adjustments are not permitted [52] .? April 2004 onwards, transfer pricing rules apply to both domestic and cross border transactions. Every domestic transfer pricing adjustment is matched by a corresponding adjustment to avoid double taxation. Earlier, this was not the case with India as domestic transactions were not covered by the Indian transfer pricing regulations. An amendment in the Finance Bill, 2012 has proposed to include specified domestic transactions while considering a transaction for computation of arm's length price. This amendment was overdue for quite some time since the inclusion of domestic transactions was done in the U.S. and U.K. many years ago.

In India, there is a lack of transfer pricing regulations that explicitly cover transfers of intangibles and intellectual property rights. The present regulations generally include intangibles but do not mention them as have been specifically laid down in Section 1.482-4(b) of the Internal Revenue Code in the U.S.A. A large number of multinational contacts signed today are relating to the transfer of patents, designs, formulae, copyrights, methods, surveys, know-how and brand names, the price of which cannot be quantified by a mathematical formula or by comparative analysis. Due to their distinct nature, they require special rules to govern them. This issue can be tackled by forming a team of experts to draft rules to address possible situations that may arise out of the said transfers.

美利坚合众国（美国）——UNITED STATES OF AMERICA

The United States of America has been the pioneer in setting up regulatory norms for transfer pricing. Decades ago in 1928, Section 45 of the U.S. Internal Revenue Code had briefly dealt with aspects of transfer pricing until detailed regulations were added in 1968. The year 1988 saw the 'white paper' recommendations followed by the 1992 regulations. Finally, on 1st of July, 1994 the U.S. Internal Revenue Service issued rules for transfer pricing under Section 482 of the Internal Revenue Code [53] .? The U.S. law applies rules to both domestic and cross border transactions between commonly controlled entities to ensure an arm's length result. The regulations recommended that a best method rule or the method that gives the most reliable arm's length result based on the facts and circumstances of the transaction under review should be selected. The factors to consider include the degree of comparability between controlled and uncontrolled transactions, the quality of the data and the assumptions, and the number, size, and accuracy of the adjustments required under each method [54] .? Transfer pricing rules in the U.S.A. are strictly applied on related party transactions within a multinational enterprise, with heavy penalties for any violation. The provisions require comprehensive contemporaneous documentation and disclosures to support transfer pricing policies. The tax payers are required to report the arm's length result in their tax return and are subjected to a heavy penalty if they fail to do so. [55]

The Indian regime has a lot to learn from the U.S. system. There is a lack of transfer pricing regulations in India that explicitly cover transfers of intangibles and intellectual property rights. The present regulations generally include intangible本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。