India tax authority proposes amendment to secondary adjustment rules for transfer pricing

The Indian government on June 20 announced an intent to modify tax regulations governing transfer pricing secondary adjustments.

An issue has arisen regarding the computation of interest when primary adjustments arise from advance pricing agreements or agreements reached under a tax treaty mutual agreement procedure (MAP), India’s Central Board of Direct Taxes said.

The Indian government has provided a proposed fix to Rule 10CB of the income tax rules and seeks comments on the modification by July 9.