Answer ... In India, the tax period runs from April to March. The due date for companies to file their income tax returns is 31 October following the end of the tax period. If the corporate entity is subject to transfer pricing, the due date is 30 November. Different dates are prescribed for other taxpayers.

Taxpayers must pay taxes due for the year on an estimated basis within the tax period in quarterly instalments, as follows:

• on or before 15 June: 15% of advance tax;
• on or before 15 September: 45% of advance tax, less advance tax already paid;
• on or before 15 December: 75% of advance tax, less advance tax already paid; and
• on or before 15 March: 100% of advance tax, less advance tax already paid.

In case of any shortfall in payment of advance tax, the same can be paid before filing the tax return, along with interest.

Answer ... The income tax laws contain various provisions for the imposition of penalties of varying amounts depending on the nature of the non-compliance or default. In addition, the defaulting entity may be liable to pay interest and tax. Violations may also be prosecuted in certain cases. Where the offender is a company and it is proved that the offence was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, that officer of the company will also be deemed to be guilty of the offence and will be liable to be punished accordingly.

Answer ... The Indian transfer pricing regulations mandate the reporting of related-party transactions. In this regard, they set out detailed rules on country-by-country reporting and the maintenance of master files and local files in line with the guidelines of the Organisation for Economic Co-operation and Development.