Section 92DTAAPOEMSEPGST OIDARPillar Two
AMLEGALS / Market Entry / Tax Architecture
India Tax Architecture & Transfer Pricing

Design the tax before you invoice the first rupee.

Treaty, transfer pricing, GST, withholding and digital nexus are not five files. They are one architecture that decides margin, audit risk and exit value. We assemble that architecture before the first invoice goes out.

Arm\u2019s length is not a slogan. It is a documented file under Section 92.
Sec 92
Arm\u2019s length principle for every international related-party transaction
3CEB
Mandatory accountant\u2019s report on international transactions with associated enterprises
POEM
CBDT Circular 6/2017 \u2014 board locus, decision locus, minute discipline
Capabilities

Six capabilities. One defensible tax file.

01

Transfer pricing policy

Section 92 · ALP

Method selection, benchmarking, Form 3CEB, Local File / Master File / CbCR, APA and Safe Harbour design.

02

Treaty architecture

DTAA · TRC · PPT

Residence, beneficial ownership, LoB / PPT defence, TRC and Form 10F file, lower withholding defence.

03

Residency & POEM

POEM · Section 6

Board calendar, decision locus, minute discipline and CBDT Circular 6/2017 read into the operating rhythm.

04

Cross-border GST

GST · OIDAR · Intermediary

Place of supply under IGST Section 13, intermediary characterisation, OIDAR, import-of-services and reverse charge.

05

Digital business nexus

SEP · Section 9

Significant Economic Presence diagnosis, business connection mapping and treaty over-ride read where invoked.

06

Global minimum tax readiness

Pillar Two · BEPS

OECD Pillar Two GloBE rules, jurisdictional ETR and top-up tax monitoring for in-scope MNE groups operating in India.

The tax sequence

From revenue model to global ETR.

01

Revenue model map

Every cross-border revenue line tagged to a tax characterisation. Output: a one-page tax position before invoicing begins.

02

TP policy

Select method, benchmark, draft inter-company agreements and file Form 3CEB. Threshold-trigger Local File / Master File / CbCR.

03

Treaty file

TRC, Form 10F, beneficial ownership memo and a documented Article-by-Article position assembled at year start.

04

Withholding architecture

Royalty / FTS / dividend / interest withholding mapped at contract stage. Reconciled to AS-26 / Form 26AS quarterly.

05

GST cross-border design

Place of supply, intermediary, OIDAR and reverse charge mapped onto invoice flow and GSTIN architecture.

06

POEM & Pillar Two

Board calendar, decision locus, minute discipline. GloBE ETR monitoring if in scope. A defensible global position.

The statutes that govern the tax file
Each is a constraint we design to.
Sec 92
Income-tax Act, 1961 \u00b7 Transfer Pricing
Arm\u2019s length principle, Form 3CEB and Local / Master / CbCR architecture.
CBDT
POEM
Section 6(3) \u00b7 CBDT Circular 6/2017
Where decisions are in substance made decides residency \u2014 and worldwide tax exposure.
CBDT
IGST
Section 13 \u00b7 Place of Supply
Cross-border services characterisation, intermediary, OIDAR and reverse charge.
CBIC
SEP
Section 9(1)(i) Explanation 2A
Digital business connection for non-residents on revenue and user thresholds.
CBDT
Answers

The five questions that decide the tax file.

01How is transfer pricing exposure managed for cross-border related-party transactions?

Section 92 of the Income-tax Act, 1961 applies the arm’s length principle to every international transaction between associated enterprises. The architecture has three layers: (i) the most appropriate method (CUP / RPM / CPM / TNMM / PSM) is selected with documented economic analysis; (ii) Form 3CEB is filed and contemporaneous Local File / Master File / CbCR are maintained where thresholds are triggered (Section 286 / Rule 10DA / 10DB); (iii) an Advance Pricing Agreement under Section 92CC or a Safe Harbour can be opted into for prospective certainty. We design the policy, defend the file and lead audit / DRP / ITAT engagement.

02How is treaty benefit defended in an Indian withholding tax position?

Treaty access is a function of residence (Article 4), Limitation of Benefits or Principal Purpose Test (where applicable), beneficial ownership and substance. A defensible Tax Residency Certificate, Form 10F and a contemporaneous beneficial ownership memo are the file. Where the treaty rate is lower than domestic withholding, the deductor must satisfy itself of these conditions before applying the lower rate. We assemble the file before the first invoice and refresh it every fiscal.

03Is Significant Economic Presence and Equalisation Levy still live?

Significant Economic Presence (Section 9(1)(i), Explanation 2A) creates a business connection for a non-resident on digital revenue or user thresholds. Equalisation Levy 2.0 at 2% on non-resident e-commerce operators was withdrawn with effect from 1 August 2024; the 6% Equalisation Levy on online advertising services has been withdrawn from 1 April 2025. The architecture today is therefore SEP and treaty / Section 9 read together, not Equalisation Levy. We map your revenue model to this updated position before invoicing begins.

04How is POEM diagnosed for foreign holdcos with India operations?

Place of Effective Management under Section 6(3) tests where the key management and commercial decisions necessary for the conduct of business as a whole are in substance made. CBDT Circular No. 06/2017 sets out the active and passive business test, board location, key personnel residence and where decisions are recorded. Mis-managed POEM converts a foreign holdco into an Indian tax resident on worldwide income. The governance protocol, board calendar and minute discipline are the architecture.

05What is the GST exposure on cross-border services to India?

Cross-border services are read through place-of-supply rules under Sections 13 and 13(8) of the IGST Act, intermediary rules, the OIDAR regime for online services to non-business recipients, and the import-of-services treatment under reverse charge. A wrong characterisation creates either double tax or denial of input credit. We design the contract, the invoicing logic and the GSTIN architecture together so that the tax position is one decision, not three.

Engage AMLEGALS

Design the tax architecture before the first invoice.

The treaty, the transfer pricing, the GST line and the withholding are one decision. Make it cleanly.