Advisers hope for development of the DRP in India
May 11, 2010
Rahul Mitra and Navneet Kothari of PricewaterhouseCoopers in India call for transfer pricing experts to be mandatorily involved in Dispute Resolution Panels (DRP) decisions.
It is said that justice delayed is justice denied. It is true that if justice is not delivered in time, it loses its relevance. The direct tax litigation process in India is a long one. It starts with an appeal filed by the taxpayer with the first level appellate authority (the Commissioner (Appeals)), if it is aggrieved with the order passed by the assessing officer. Next the party, (taxpayer or Revenue), who objects to the verdict of the Commissioner (Appeals) goes to the Tax Tribunal, which is the last of the fact finding authorities. The process generally culminates at the High Court or Supreme Court level, in the event of disputes on questions of law. As such, there is no stipulated time limit for disposal at each level, which leads to a prolonged litigation process and thus significant uncertainty among taxpayers in matters of dispute resolution.
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