India’s New Tech Pricing ‘Safe Harbor’ Wins Broad Interest

India’s offer to provide information technology and related industries more certainty about their tax positions is gaining intense interest, especially because it’s seen as a way to avoid prolonged disputes with tax authorities.

Many plan to choose India’s expanded “safe harbor” for pricing their foreign related-party IT transactions, a path tax practitioners say is now very attractive.

“Almost all of our clients are discussing it,” said Rinit Gupta, executive director of transfer pricing at Price Waterhouse & Co. LLP.

If a safe harbor application is approved, taxpayers would get protection against further questioning by the tax department on their ...