T.G.I. Fridays Essay Example | Topics and Well Written Essays - 500 words

T.G.I. Fridays - Essay Example The inner decor of the restaurant gives it a feel of a theatrical stage, the ambience, the service, the product along with the package make the visit memorable for the customers. The study deals with evaluating the service technologies used and assessing the image created by it in the minds of the people and the media. Moreover, the success attained by the T.G.I. Friday’s social media campaign will also be evaluated. Discussion The T.G.I Friday’s provides mass customisation service to the customers to maintain the standard and make them feel valued. The service technologies used the restaurant include the Point of Sale (POS) to rationalise its front and back office procedures to make the guests enjoy the service and experience the quality of offerings. T.G.I Friday’s has used the customisation technology to provide personalised menu to the customers satisfying their request through menu permutation. The restaurant uses the computer technology to monitor the timel y service delivery of foods by the employees with standardised behaviour. The approach of the management is to provide distinguished and standard quality by implementing hard and soft elements in the service. The hard element is the used is the parking facility which helps in attracting more customers.

Consumer Society Gives People Choice Essay Example | Topics and Well Written Essays - 1500 words

Consumer Society Gives People Choice - Essay Example Hinchcliff et al, (2009) see consumption as a lifestyle and something that comes as a result of socialization. It is therefore, for him, a lifestyle involving people using goods and services, as the last bearers. It therefore for him the end line of ‘economic activities’ begins with assessment of the resources available and goes on through to the production stage and distribution.Consumer Society, or rather Consumerism, has been viewed as an economic as well as a social structure tailored and lined on the calculated systematic creation and fostering of a desire to purchase goods and services in greater amounts and sometimes with a tinge of variety. It is a process that sows the seed of belongingness (Hinchcliff et al, 2009, pg 20).The major understanding by social scientists is that consumption presents different values, attitudes and a sense of belonging (Hinchcliff et al, 2009, pg 21). The characteristic of the consumer society can be examined in the context of the com mon expression that support the concept consumer society and the lifestyle that individual and collective consumers exhibit as far postmodern consumerism is concerned. For Social Scientists, a number of factors come into play as far as consumer choices go. These include income, media, goods and their nature, educational status, social expectations, peer influence among others. Some of the variables to these would perhaps be captured in the popular expressions would be like ‘everybody is a walking advertisement’.... It is a process that sows the seed of belongingness (Hinchcliff et al, 2009, pg 20). Features of the Consumer Society The major understanding by social scientists is that consumption presents different values, attitudes and a sense of belonging (Hinchcliff et al, 2009, pg 21). The characteristic of the consumer society can be examined in the context of the common expression that support the concept consumer society and the lifestyle that individual and collective consumers exhibit as far postmodern consumerism is concerned. For Social Scientists, a number of factors come into play as far as consumer choices go. These include income, media, goods and their nature, educational status, social expectations, peer influence among others (Hinchcliff et al, 2009, pg 21). Some of the variables to these would perhaps be captured in the popular expressions would be like ‘everybody is a walking advertisement’. Consumer Sovereignty (Hinchcliff et al (2009) seems to contend that that from the time of the Economists Adam Smith, economics debates have always had the assumption that the centre of a sound economy is based on the final demand of goods/services; therefore, it is believed my man. Economists argue that meeting the demands involves amicably seeking to ensure that their desires are met and that they are centre of production and promotion of conspicuous buying and therefore fitting the label â€Å"these are the seduced ones of the nineteenth century† (Hinchcliff et al, 2009, pg 32). Arguments for the Consumer Sovereignty: What are some of the causes and institutions? The basic assumption here is that the consumer in the modern

Infectious Complications of Kidney Transplantation

Infectious Complications of Kidney Transplantation Introduction: Infections that develop after transplantation may be life-threatening and may affect outcomes. Infection follows cardiovascular disease as the second most common cause of death with a functioning graft in kidney transplant recipients. Post-transplant infections develop in approximately 40% of recipients within the first year in spite of prophylaxis. Both the type and occurrence of infections in the immunocompromised transplant recipient follow a timetable pattern. HBV, hepatitis B virus; HIV, human immunodeficiency virus; HSV, herpes simplex virus; LCMV, lymphocytic choriomeningitis virus; MRSA, methicillin-resistant Staphylococcus aureus; PCP, Pneumocystis carinii pneumonia; PML, progressive multifocal leucoencephalopathy; PTLD, post-transplantation lymphoproliferative disorder; SARS, severe acute respiratory syndrome; VRE, vancomycin-resistant Enterococcus faecalis; VZV, varicella-zoster virus. Reproduced from Fishman JA. Infection in solid-organ transplant recipients. N Engl J Med 2007; 357:2601-14. With permission from the Massachusetts Medical Society.  © 2007 Massachusetts Medical Society. Risk Factors for Posttransplant Infectious Complications Pretransplant host factors: Underlying medical condition e.g. Diabetes Mellitus Chronic infections e.g. Hepatitis C viral infection Latent infections e.g. Tuberculosis, Dimorphic fungi Colonization with resistant bacteria Recipients preexisting immunity e.g. Varicella Zoster Virus Prior medications e.g. Antimicrobials, Corticosteroids Transplant factors: Allograft derived e.g. Cytomegalovirus Surgical duration, instrumentation, wound, abdominal fluid collections, technical issue e.g. type of anastomosis Blood transfusion Immunosuppression Immunosuppressive agents and additional treatment for episodes of rejection Time posttransplant Epidemiologic exposure Urinary Tract Infections: Urinary tract infections (UTIs) are the most common bacterial infections following transplantation, which develop in approximately 20% of recipients. Female sex, genitourinary tract manipulation during transplantation, prolonged bladder catheterization, ureteric stenting, age, and delayed graft function (DGF) are independent risk factors. UTIs are independently associated with the development of bacteremia, and untreated UTIs are associated with subsequent rejection (3). Post-transplant vesicoureteric reflux occurs in up to 40% of transplant recipients, although is not associated with the UTI risk (4). Ureteric stents mitigate the risk of ureteric strictures and leaks after transplantation. Center practices vary, with stenting of all patients at some centers and more selective stenting at others. Wilson et al. performed a Cochrane analysis of seven randomized controlled trials (RCTs) encompassing 1,154 patients that examined the practice of allograft ureteric stenting (5). The incidence of major urologic complications including urine leak and obstruction was significantly reduced (relative risk [RR], 0.24; 95% CI, 0.07 to 0.77; P=0.02; number needed to treat = 13) by universal prophylactic stenting. However, UTIs were more common in stented patients (RR, 1.49; 95% CI, 1.04 to 2.15), unless the patients were prescribed trimethoprim/sulfamethoxazole (TMP/SMX), in which case the incidence was equivalent (RR, 0.97; 95% CI, 0.71 to 1.33). Stents were generally well tolerated, although studies using longer stents (à ¢Ã¢â‚¬ °Ã‚ ¥20 cm) for longer periods (> 6 weeks) developed problems mo re frequently with encrustation and migration. Typical pathogens include Escherichia coli, Klebsiella, Proteus, Enterococcus, Enterobacter, Staphylococcus, and Pseudomonas. In the case of recurrent infections, abscesses or other nidi of infection should be sought out by means of imaging with ultrasound or computed tomography. Early catheter removal decreases the incidence of UTI in renal allograft recipients. The use of TMP/SMX to prevent Pneumocystis jirovecii pneumonia and UTI has long been the standard of care after kidney transplantation. Wojciechowski et al. performed a single-center study comparing TMP/SMX for 6 months (group 1) versus TMP/SMX for 6 months plus ciprofloxacin for 30 days (group 2) for prophylaxis after kidney transplantation (6). At 1 year, more patients in group 1 developed UTIs (23.6% versus 10.8%; P=0.01) and the mean time to first UTI was shorter. There was a similar incidence of enteric Gram-negative antibiotic resistance to TMP/ SMX (75% versus 80%; P=1.00) and ciprofloxacin (16.7% versus 30%; P=0.39) in groups 1 and 2. For groups 1 and 2, the proportion of first UTIs requiring hospitalization was 48.9% versus 40.6%, respectively. A clean-catch midstream urine specimen should be submitted for quantitative bacterial and fungal  culture. Antibiotic therapy should be tailored according to the offending microorganism and drug susceptibility tests. Septicemia: The incidence of hospitalizations for septicemia among renal transplant recipients is approximately 42 times that of the general population. The urinary tract is the most common source of septicemia, followed by the lungs, the surgical wound site, and the abdomen. Most cases occur within the first six months after transplantation. Among patients with bacteremia, poor outcome is associated with Gram-negative species, multidrug-resistant organisms, and Candida species, especially when the empiric antimicrobial therapy is inappropriate or delayed. Bige et al. retrospectively studied 83 kidney transplant recipients (KTRs) admitted for sepsis, severe sepsis, or septic shock to their intensive care unit over a 10-year period (1). The main sites of infection were the lung (54%), urinary tract (24%), and bloodstream (22%). Eighty percent of infections were bacterial. Mechanical ventilation was used in 46 patients (56%), vasopressors in 39 patients (47%), and RRT in 34 patients (41%). The 90-day mortality rate was 22%. By day 90, among the 65 survivors, 39 (47%) had recovered their previous graft function, and 26 (31%) had impaired graft function, including 16 (19%) who were dependent on RRT. Some studies suggest that bacterial sepsis increases the risk for CMV infection because of high levels of tumor necrosis factor-ÃŽÂ ± (TNF-ÃŽÂ ±) or dysregulated immune response to CMV in the context of serious bacterial infections. For detection of bloodstream infection, two sets of blood cultures should be obtained before initiation of antimicrobial therapy. If intravascular catheter-associated bacteremia is suspected, the device should be removed and the catheter tip should be cultured. Pneumonia: The incidence of pneumonia in kidney transplantation is the lowest among all solid organ transplants (8 to 16 percent). However, pneumonia is the most serious infection, leading to death in up to 50 percent of cases. The infectious agent in the majority of patients is never determined. This is likely because of the low yield of blood and sputum cultures and the efficacy of antibacterial therapy. In patients who are hypoxic on presentation or do not respond to initial therapy, a bronchoscopy and bronchoalveolar lavage (BAL) is almost always warranted. Patients should be referred if possible to a transplant center to improve the likelihood of diagnosing the etiologic agent. Common causative organisms include Streptococcus pneumoniae, nontypable Haemophilus influenzae, Moraxella catarrhalis, Chlamydia pneumoniae, Mycoplasma pneumoniae, and respiratory viruses such as influenza, adenovirus, and respiratory syncytial virus (RSV). Less commonly, patients may present with opportunistic organisms such as P. jirovecii and L. pneumophila. Silver stains for direct fluorescent antibody for Pneumocystis should be done on sputum or BAL specimens. A urine Legionella antigen test should be done on all patients on initial work up. Mycobaterium tuberculosis: Among the infections, tuberculosis is an important cause of morbidity in renal transplant recipients in developing world. The incidence of post-transplant tuberculosis in India has been reported to be highest in the world at 5.7 to 10 percent in various studies. Most cases of Mycobacterium tuberculosis infection in kidney transplant recipients are due to reactivation of latent tuberculosis lesions. Important risk factors for reactivation include nonwhite race, history of active tuberculosis, presence of marked abnormality on a chest radiograph, exposure to person with a confirmed case of tuberculosis, and skin test positivity. In transplant patients, the clinical presentation of tuberculosis may be atypical and extrapulmonary and miliary tuberculosis is seen more frequently than in the normal population. Tuberculosis presents numerous diagnostic difficulties in renal transplant recipients. Because of high frequency of anergy in immunosupressed patients, the Mantoux test is generally unhelpful as a diagnostic tool. e classic picture of apical involvement in the general chest X-ray is seen in only a minority of renal transplant recipients with pulmonary tuberculosis. Demonstration of acid-fast bacilli in the sputum smear requires repeated examination on several occasions and has a low yield. Identification on culture takes four to six weeks. Treatment of post-transplant tuberculosis presents problems both in the choice of antitubercular agents and in the duration of therapy. Rifampicin is a well-known hepatic P-450 microsomal enzyme inducer, increasing the clearance of both prednisolone and cyclosporine A. The dose of prednisolone needs to be doubled and that of cyclosporine increased to three- to four-fold to maintain therapeutic blood levels. e latter increases the cost of therapy and is unacceptable to a vast majority of patients. An alternative regime that has been successfully used for these patients consists of a combination of isoniazid, pyrazinamide, ofloxacin, and ethambutol. e optimum duration of therapy is also a matter of debate but is usually for 9 to 12 months. e duration needs to be increased to 18 months in patients who are on cyclosporine and are not receiving rifampicin. e role of INH prophylaxis after transplant in endemic areas is controversial. Cytomegalovirus (CMV): CMV is a significant cause of morbidity and mortality among kidney transplant recipients. Between 60 and 90 percent of adults are seropositive. Symptomatic disease ranges from a relatively mild syndrome of fever, leukopenia, thrombocytopenia, and elevated liver enzymes to severe disseminated disease that involves multiple organ systems, such as the lung, liver, and GI tract. CMV disease has been implicated as a cause of acute and chronic graft dysfunction as well as long-term graft loss. CMV can also suppress the immune response which predisposes the host to infections with other viruses, bacteria, and fungi. The incidence and severity of CMV disease has been most strongly associated with the CMV serostatus of the kidney donor and recipient. Seronegative recipients who receive a kidney from a seropositive donor (D+/R-) are at greatest risk for severe primary infection during the first three months post-transplant. Rapid and accurate diagnosis of CMV is important because delayed recognition results in increased morbidity. Quantitative real-time polymerase chain reaction assays for CMV DNA and pp65 antigen detections are the most commonly used means to detect CMV viremia. e shell vial viral culture method remains a reliable way of detecting CMV in sputum. Multiple strategies have been used to reduce the morbidity and mortality of CMV infection and its associated costs (see Table 4). Avoiding CMV sero- mismatching through organ allocation is not feasible or worthwhile. Universal prophylaxis refers to giving prophylactic therapy to all kidney transplant patients regardless of their CMV serostatus. Selected prophylaxis refers to giving prophylaxis to patients at high risk for CMV, namely the D+/R- category or those receiving lymphocyte-depleting therapy. e preemptive treatment approach treats asymptomatic CMV infection in an e ort to prevent CMV disease. Each approach has its advantages and disadvantages, and there is no de nitive consensus on optimal preventive strategy. Prophylactic Therapy: Prophylactic therapy is effective in preventing CMV disease in high-risk patients. Ganciclovir and valganciclovir are equally efficacious. Ganciclovir 1,000 mg PO three times daily and valganciclovir 900 mg PO once daily are used. Valganciclovir is contraindicated in patients with a creatinine clearance of less than 10 ml/h. Prophylactic therapy is usually given during the first 100 days post- kidney transplant. A concern with the prophylactic strategy is that 20 to 30 percent of high-risk patients go on to develop late-onset CMV disease after the prophylaxis is stopped, and the incidence of ganciclovir resistance may be higher in those who receive prophylaxis. Preemptive Therapy: Preemptive therapy of CMV infection involves monitoring for CMV viremia and starting treatment before the development of signs or symptoms of disease. It has been shown to be as effective as prophylactic therapy in preventing CMV disease. Both oral ganciclovir and valganciclovir have been shown to be effective in treating viremia. Preemptive therapy has the advantage of avoiding the costs and complications of antiviral therapy in low-risk patients while at the same time initiating treatment early to avoid symptomatic disease in high-risk patients. It has also been shown to decrease the development of late CMV disease. Its major limitation is the need to perform frequent determinations of CMV viremia. Ganciclovir Resistance: Ganciclovir resistance is becoming more common among solid-organ transplant recipients. In one study, 6.2 percent of CMV isolates had UL97 or UL54 mutations. Viral strains with mutations in the UL97 gene, which encodes for a viral protein kinase, remain susceptible to foscarnet and cidofovir. Mutations in the UL54 gene that encodes DNA polymerase can result in resistance to ganciclovir, foscarnet, and cidofovir. e emergence of ganciclovir-resistant CMV underscores the importance of optimizing preventive strategies. BK Virus (BKV): BKV is associated with post-transplantation nephropathy, hemorrhagic cystitis, and ureteral obstruction. It has a tropism for genitourinary tract and usually remains dormant in the urinary tract and circulating leukocytes after the primary childhood infection and becomes reactivated during immunosuppression. Adult seroprevalence rates for BKV range from 65 to 90 percent and BKV reactivation can come from the recipient or the donor. BK viremia occurs in 13 percent and BK nephropathy in 8 percent of kidney transplant recipients. Analysis of risk factors for reactivation has underscored the central role played by serologic status of the donor, immunosuppressive regimens, injury to the uroepithelial tissue, and acute rejection. Distinguishing between BK infection and allograft rejection is of paramount importance, since BK infection necessitates reducing immunosuppression and allograft rejection requires the opposite. Among kidney transplant recipients who are receiving immunosuppressive therapy, 10 to 60 percent have reactivation of BKV accompanied by shedding of urothelial cells. Shedding is inconsistently associated with allograft dysfunction. Once the virus has reactivated, an ascending infection via cell-to-cell spread occurs. e overall state of immunosuppression is the primary determinant of BKV reactivation. Viral replication begins early after transplantation and progresses through detectable stages-viruria, then viremia, then nephropathy. Viruria can be detected by PCR for BKV DNA, reverse transcription (RT)-PCR for BKV RNA, cytology for BKV inclusion bearing epithelial cells termed decoy cells, or electron microscopy for viral particles. Viremia is a better predictor of nephropathy than viruria. Although higher levels of viremia correlate with the risk of developing nephropathy, there are no established thresholds of viremia to indicate nephropathy. The gold standard for establishing BK nephropathy remains a kidney biopsy with positive immuno- histochemical or immunofluorescent staining for the SV-40 large T antigen. An effective screening strategy is to check blood for BKV DNA by PCR monthly for the first 3 months and at 6 and 12 months after transplantation, at the time of any unexplained rise in serum creatinine, and after augmentation of immunosuppression. Because BKV nephropathy is preceded by BK viremia, asymptomatic BK viremia should prompt empiric immunosuppression reduction and continued monitoring. Currently, no established antiviral treatment is available, and control of viral infection is tentatively obtained by means of reduction of immunosuppression. Treatment attempts have included immunoglobulins without proof of efficacy. Other options include deoxyspergualin, cidofovir, leflunomide, uoroquinolones and gyrase inhibitors. Cidofovir use is limited by its nephrotoxicity. Fungal Infections: The incidence of fungal infections in renal transplant recipients is less than that reported for other solid organ transplant recipients, the mortality from fungal infections remains high and is related to the pathogenicity of the  organisms, site of infection, impaired host inflammatory response, limited diagnostic tools, potential for rapid clinical progression, failure to recognize a high-risk patient, and comorbidities, such as renal failure and diabetes mellitus. Colonization with yeasts and molds occurs frequently in transplant candidates with ESRD and after transplantation because of exposure to broad-spectrum antibacterial agents, domiciliary and hospital exposures, immunosuppressive therapy, especially corticosteroids, and the presence of urinary catheters and endotracheal tubes. Isolation of Candida species from cultures of stool, respiratory, and urine samples occurs commonly in kidney transplant recipients receiving corticosteroids and broad-spectrum antimicrobials and does not necessarily imply infection. However, repeatedly positive fungal cultures from a single or from multiple sites may herald invasive candidiasis in the appropriate clinical setting. Candida species, Aspergillus species, P. jiroveci, and C. neoformans are the most common fungal pathogens reported in renal transplant recipients. Candida infections occur most commonly during the first month following transplantation and are usually associated with transplant surgical technical complications, early rejection, and enhanced immuno- suppression. Candida infection is most commonly associated with an endogenous source of colonization. C. albicans is the most common species, followed by C. glabrata, C. tropicalis, and C. parapsilosis. Speciation is clinically useful because nonalbicans Candida species vary in in vitro susceptibility to amphotericin B and azoles. Sites of Candida infection include mucocutaneous candidiasis and esophagitis; wound infections; cystitis, pyelonephritis, and ureteral obstruction by Candida elements or fungal ball; intra- abdominal infections, including infected perigraft fluid collections or peritonitis; and intravascular device- associated fungemia. Renal parenchymal infection most often results from candidemia and hematogenous spread, although ascending infection from the bladder can oc cur. Candiduria is typically asymptomatic but may be associated with cystitis or upper tract infection. Patients with genitourinary tract stents and recurrent funguria often require removal of foreign body to eradicate the infection. Cryptococcus often presents as meningitis but may cause space-occupying brain lesions; pulmonary, dermatologic, skeletal, organ-specific disease; aspergillosis-pneumonia and other tissue-invasive forms, including genitourinary, central nervous system, rhinocerebral, GI, skin, wound, and musculoskeletal disease. Patients at risk for aspergillosis include those receiving repeated courses of enhanced immuno- suppression for rejection and those with chronic graft dysfunction, diabetes, comorbid medical illnesses, or CMV infection. Diagnosis of aspergillus infection depends on a high clinical suspicion, isolation of Aspergillus species from a sterile body site or repeated isolation from the respiratory tract, and typical radiographic findings. Radiologic appearances of pulmonary aspergillosis in kidney transplant recipients include nodules, di use or wedge-shaped opacities, empyema, or cavitary forms. Serial measurement of aspergillus galactomannan in the serum may aid in the early diagno sis of invasive aspergillosis in the high-risk setting. Historically, invasive candidiasis, cryptococcosis, coccidioidomycosis, histoplasmosis, and aspergillosis were treated with amphotericin B deoxycholate (AmB). The lipid formulations of amphotericin B are all associated with lower risks for nephrotoxicity, metabolic derangements, and infusion-associated side effects than is AmB. Higher therapeutic dosages can be administered, and broad-spectrum antifungal activity is generally maintained. Voriconazole appears to be superior to conventional AmB for the treatment of invasive aspergillosis and also has in vitro activity against a wider range of organisms. Available in both intravenous and oral formulations, the drug is generally well-tolerated, but some patients experience visual hallucinations or severe photosensitivity. Oral posaconazole has excellent activity in vitro against Candida, Aspergillus, and Mucor species, but experience in solid organ transplant recipients is limited to date. Although itraconazole has good in vitro activity against Aspergillus species, its use is generally reserved for treatment of less-severe aspergillosis or maintenance therapy following initial response to lipid amphotericin or voriconazole and for treatment of endemic mycoses. Fluconazole is the first-line agent of the treatment or prevention of reactivation of coccidioidomycosis in renal transplant  recipients. The echinocandins, including caspofungin, anidulafungin, and micafungin, inhibit synthesis of fungal cell wall protein ÃŽÂ ²1-3 glucan and are fungicidal for Candida species, including fluconazole-resistant species. Available only as intravenous formulations, the echinocandins are effective, well tolerated, and have few drug-drug interactions.

Mobile Phone-based Interaction Techniques Essay -- Technology, Bluetoo

Many of the research presented in the field of mobile phone-based interaction techniques that have been developed so far fall into three main classes according to Sas & Dix [21]. In some research, the personal device effectively acts as an extended input device for text editing or pointing task. In others, the phone is used to upload and download media using standard content and protocols. The third class is where the mobile phone is a more integral part of the interaction, typically using the display of the device in concert with the public display. Ballagas et al [7] present a survey of the existed interaction techniques that use mobile phones as pointing device. Alongside with the survey, they present an analysis on these techniques based on the following taxonomy: position, orient, select, path, quantify, and text .The study concludes that the mobile phone is suitable devise for positioning tasks in various ways especially when interacting with public display in pervasive environ ment. Bellow we present some studies based on Sas & Dix classification [21]. Mobile phone as pointing devise: As a research area, several studies use image processing and visual recognition as a base in there interaction technique, since that most of the smart phones and handheld devices are equipped with digital camera. Jiang et al [1] attempted to take advantage of this fact by proposing a study to interact with display through mobile device camera. There method uses the position of the cursor on the display as the basic input source. The presented systems depend on a closed-loop of feedback between the handheld device and the display to provide continuous-visual feedback. This closed-loop starts with presenting the cursor on the display. Then, th... ...sts of three units: the Symbian client application running on the mobile phone. The role of this unit is to enable users to select a track from the presented list on the phone screen. The second unit is the server application running on a PC which counts the votes from all client unit users. The last one is a large public display which acts as the main user interface showing the track list and their votes. Kaviani et al [13] propose new user interface concept that take advantage of the input and output capability of large public display and mobile phone. They call this mode of interface as â€Å"dual display†, which allows users to execute multimedia user interfaces across both large and small display types. By shifting parts of a user interface down to a personal mobile device number of problems originating from limitations in large display real estate can be solved.

Analyzing Indian Transfer Pricing Regulations: a Case Study

International Research Journal of Finance and Economics ISSN 1450-2887 Issue 40 (2010)  © EuroJournals Publishing, Inc. 2010 http://www. eurojournals. com/finance. htm Analyzing Indian Transfer Pricing Regulations: A Case Study Monica Singhania Associate Professor, Faculty of Management Studies (FMS), University of Delhi, India E-mail: [email  protected] du Abstract The Indian Transfer Pricing regulations have been enacted with a view to provide a statutory framework which can lead to computation of reasonable, fair and equitable profit and tax in India so that the profits chargeable to tax in India do not get diverted elsewhere by altering the prices charged and paid in intra-group transactions leading to erosion of Indian tax revenue. Any income arising from an international transaction shall be computed having regard to the arm’s length price (ALP). The ALP shall be determined by any of the prescribed methods, being the most appropriate method. The present paper illustrates the practical aspects of the law regarding transfer pricing as it exists presently in India with the help of a case study. The relevant rules envisage determination of ALP by applying margins of each comparable company to the appropriate base of the enterprise. The regulations further provide that, where more than one price is determined by the most appropriate method, the ALP shall be taken to be the arithmetical mean of such prices. An alternative practical approach to arrive at such ALP is to compute the arithmetic mean of margins of comparable companies and apply the same to the appropriate base of the tested party to determine the ALP. The analysis shows that the mean GP/Sales of comparable companies is 33. 71% while that of the PQR India (i. e. , the tested party) is 44. 20% during the year ended March 31, 2009 indicating that the prices of international transaction of PQR India conform to the arm’s length standard prescribed under the Indian regulations. Further, under Category B, costs recharged by PQR Group to PQR India are included. All these costs represent actual amounts paid by PQR Group to independent third parties and are recovered from PQR India, on a cost-to-cost basis. Applying the comparable uncontrolled price method, these recharges conform to the arm’s length standard prescribed under the Indian regulations. However, there are some practical problems arising out of the applications of transfer pricing egulations, which need to be addressed by the tax administrators as early as possible. These issues include absence of advance pricing agreements (APA) mechanism in India, data limitations, extremely wide definition of associated enterprises in India, stringent penalties, difficulties encountered while conducting economic analysis/benchmarking and many more. Keywords: Transfer Pricing, Tax laws, International transactions, Arms length price 1. Introduction The Indian Transfer Pricing regulations have been enacted with a view to provide a regulatory framework which is capable of computing reasonable, fair and equitable profit and tax in India so that the profits chargeable to tax in India do not get diverted elsewhere by altering the prices charged and 204 International Research Journal of Finance and Economics – Issue 40 (2010) paid in intra-group transactions leading to erosion of Indian tax revenue. Any income arising from an international transaction shall be computed having regard to the arm’s length price (ALP). The regulations on transfer pricing in India were clearly inevitable and long overdue. The regulations in their present form are a product of the findings of the Expert Group set up by the Government of India in November 1999 to study global transfer pricing practices and examine the need for such legislation in India. The Indian transfer pricing regulations applicable with effect from April 1, 2001 are largely based on the OECD guidelines. By manipulating a few book entries in the accounts books, multinational corporations are able to transfer huge profits with practically no actual change in the business process. For instance, X Ltd. manufactures ipods for $ 500 in China, but its US based subsidiary buys it for $ 599, and then sells it for $ 600. By doing this, the company’s taxable profit in the US is substantially decreased. At a 30 percent tax rate, the company’s tax liability in the US is only 30 cents (i. e. , 30% of $ 1) as compared to $30 (i. . , 30% of $ 100 which should have been the case). The large scale tax avoidance practices used by multinational corporations came into public notice when the drug giant MNE, GlaxoSmithKline, agreed to pay the US government $3. 4 billion to settle a long-running transfer pricing dispute over its tax dealings between the UK parent company and its American subsidiary. This was the largest settlement of a tax dispute in the US. Multinational corporations derive several benefits from transfer pricing. Since each country has different tax rates, they can increase their profits with the help of transfer pricing. By lowering prices in countries where tax rates are high and raising them in countries with a lower tax rate, such organizations can reduce their overall tax burden, thereby boosting their overall profits. Indeed one often finds that corporations located in high tax countries in fact pay very little corporate taxes. Transfer pricing features highly on the agenda of Indian tax authorities. The transfer pricing assessments relating to the first two years since the introduction of the Transfer Pricing regulations have seen incremental tax collections arising from transfer pricing adjustments in excess of US$ 800 million. The first round of transfer pricing audits in India of roughly 800 taxpayers resulted in 25% facing adjustments. The cumulative value of those adjustments aggregated US$ 300 million. In the following year, according to estimates, tax demands in excess of US$ 500 million were imposed as a result of upward adjustments. In this connection, the Indian tax authorities had initially set a very conservative threshold for audit INR 50 million (around USD 1 million) for the first four years. This threshold has been enhanced thrice with effect from the financial year 2005-06. The Indian tax authorities have also set up a specialized group for undertaking transfer pricing audits and have begun using confidential comparable data for audit purposes. Scrutiny of overall profitability as well as transactional level pricing during the course of transfer pricing audits is also frequently done. 2. Theoretical Framework The role of multinational enterprises (MNEs) in world trade has increased dramatically over the last 20 years. This reflects the increased integration of national economies and technological progress. Intercompany transactions across borders are growing rapidly and are becoming much more complex. Compliance with the different requirements of multiple overlapping tax jurisdictions is a complicated and time-consuming task. At the same time, tax authorities from each jurisdiction impose stricter penalties, new documentation requirements, increased information exchange and increased audit or inspection activity. With a view to provide a detailed statutory framework which can lead to computation of reasonable, fair and equitable profits and tax in India, in the case of such multinational enterprises, the Finance Act, 2001 substituted the then existing section 92 with sections 92A to 92F in the Income-tax Act, 1961, relating to computation of income from an international transaction having regard to the arm's length price, meaning of associated enterprise, meaning of information and documents by persons entering into international transactions and definitions of certain expressions occurring in the said section (see Appendix I for summary of Indian Transfer Pricing Regulations). The essential International Research Journal of Finance and Economics – Issue 40 (2010) 205 documentation which needs to be maintained for complying with these provisions as also the penalties for default in compliance are given in Appendix I. As per the Indian Regulations, the comparable data to be used in anal yzing the comparability of an uncontrolled transaction with an international transaction should be the data relating to the financial year in which the international transaction has been entered into. However, data relating to a period not being more than two years prior to such financial year may also be considered if such data reveals facts, which could have an influence on the determination of the transfer price in relation to the transactions being compared. The Arm's length principle (ALP) aims at determining whether the parties to a transaction are independent and are on an equal footing. The OECD framework as per Article 9 of the OECD Model Tax Convention ensures that the transfer prices between companies of multinational enterprises are established on a market value basis, avoiding profits being systematically deviated to lowest tax countries. It provides the legal framework for governments to have their fair share of taxes, and for enterprises to avoid double taxation on their profits. The primary onus of proving the arm’s length character of a transaction lies with the taxpayer. If during assessment proceedings, the tax authorities, on the basis of material or information or documents in their possession, are of the opinion that the arm’s length price was not applied, or adequate and correct documents/ information/ data were not maintained/ produced, the total income may be recomputed accordingly after giving the taxpayer an opportunity of being heard. 3. Literature Review There are numerous studies relating to transfer pricing in transactions taking place in developed countries1. This is primarily due to, the detailed statistical information relating to intra-firm trade made available in most of the developed countries, stringent laws requiring greater transparency, etc. In comparison, the availability of intra-firm trade data in developing countries is highly inadequate2. In addition, there is no systematic attempt in developing countries, to collect and analyze relevant data in one information repository database leading to multiple uses of such or ganized information. This is the case even though such information may in many cases exist with different government organizations, legal and administrative authorities and private business organizations engaged in creation of such databases for commercial reasons. This disjointed effort to data collection leads to multiple problems in undertaking quality research studies. It also highlights complete lack of coordination between policies, procedures and their practical application. Also the lack of any government sponsored studies, like those in Colombo, Greece and Sri Lanka, may be the reason why not many transfer pricing studies are undertaken in such countries. In United Kingdom, the transfer pricing rules were formulated as early as in 1915 [(Payan and Wilkie (19933)]. However, there was little pressure on such rules until mid 1960s when the revival of international trade and investment following World War II began. As far as United States is concerned, even before the non-traditional methods of transfer pricing were added to section 482, Schindler and Henderson (1985)4 pointed out, â€Å"Inter-corporate transfer pricing under the scope of code section 482 is one of the most complex areas of international taxation. † The non-traditional methods further added to complexity. The OECD’s Transfer Pricing Guidelines (1995)5, based on guidelines first issued in 1979, 1. Lall S. 1973), â€Å"Transfer Pricing by Multinational Manufacturing Firms†, Oxford Bulletin of Economics & Statistics, Vol. 35(3), pp. 173-95. 2 Bhagwati J. N. (1974), â€Å"On the Under Invoicing of Imports, Fiscal Polices of the Faking of Foreign Trade De clarations of the Balance of Payments†, in Bhagwati (ed. ), Illegal Transactions in International Trade, North Holland Publishing Co. 3 Pagan, Jill C. and J. Scott Wilkie, (1993) â€Å"Transfer Pricing Strategy in a Global Economy†, Amsterdam: IBFD Publications. 4 Schindler, Geunter and David Henderson (1985),â€Å" Intercorporate Transfer Pricing: 1985 Survey of Section 482 Audits,† Tax Notes, Vol. 29, pp. 1171-77. 5 OECD (1995, as updated). Transfer Pricing Guidelines (Paris: OECD). 206 International Research Journal of Finance and Economics – Issue 40 (2010) largely influence international practice with regard to transfer pricing. The Indian transfer pricing regulations, introduced in 2001, are to an extent modeled on the OECD guidelines. Li (2003)6 describes the methods of transfer pricing by way of an international comparison involving six countries namely, China, Hong Kong, Japan, Canada, United States and Singapore. Ring (2000)7 explains the methodology of undertaking Advance Pricing mechanisms whereby both the tax payers as well as tax administrators agree in advance on the methodology to be used to determine transfer prices in order to avoid unnecessary litigation. Lall (1979)8 highlights the need of a laid back attitude towards transfer pricing in developing countries so as to remain an attractive investment destination in the form of foreign direct investment. R. Murray [1981]9 studied the mechanism by which international tax avoidance is achieved. These mechanisms include general manipulations as well as specific manipulations to items in the profit and loss account and balance sheet. Baistrocchi (2004)10 explains the administrative inexperience of developing countries in implementing transfer pricing rules. Mo (2003)11 gives instances of manipulation of transfer prices and steps taken to combat it in China, India, Brazil and Mexico. UN Survey (1999)12 reveals that in developing countries about 61 per cent respondents felt that the domestic multinational enterprises were engaged in income shifting and 84 per cent believed that foreign enterprises were doing so. In addition, 70 per cent and 87 per cent, respectively, of these countries thought the problem to be significant. Newlon (2000)13 notes the tendency of MNCs to over report income in jurisdictions that impose heavy penalties. Mitchell (2004)14 treats worldwide taxation as a form of tax harmonization. According to his view, tax harmonization is categorically undesirable because â€Å"taxpayers are unable to benefit from better tax policy in other nations and governments are insulated from market discipline†. 4. PQR India: Case Study Design and Analysis Global Tax Consultants Pvt. Ltd. ave been engaged by PQR India to review the transfer pricing arrangements for international transactions with its associated enterprises during the year ended March 31, 2009 on the terms set out in the engagement letter. The objective of this paper is to establish whether the international transactions between PQR India and its associated enterprises adhere to the arm’s length principle, embodied in the Indian Transfer Pricing Regulations of the Indian Income-Tax Act, 1961(see Appendix I) and in addition look to the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations published by the Organization for Economic Cooperation and Development for further guidance in applying the arm’s length standard. 6 Li, Jinyan (2003), â€Å" International Taxation in the Age of Electronic Commerce†: A Comparative Study (Toronto: Canadian tax Foundation). 7 Ring, Diane M. (2000). â€Å"On the Frontier of Procedural Innovation: Advance Pricing Agreements and the Struggle to Allocate Income for Cross Border Taxation,† Michigan Journal of International Law, Vol. 21 (winter) pp. 143-234. 8 Lall, Sanjaya. (1979). â€Å"Transfer Pricing and Developing Countries: Some Problems of Investigation,† World Development, Vol. 7 Issue 1 (January), pp. 59-71. 9 Murray R. Editor (1981), â€Å"Multinationals Beyond the Market: Intra-firm Trade and the Control of Transfer Pricing†, London: Harvester Press Brighton, pp. 119-32. 10 Baistrocchi, Eduardo. (2004). The Arm's Length Standard in the 21st Century: A Proposal for both Developed and Developing Countries. † Tax Notes International, Vol. 36 No. 3 (October 18), pp. 241-255. 11 Mo, Phyllis Lai Lan. (2003); â€Å"Tax Avoidance an d Anti-avoidance Measures in Major Developing Economies† (Westport, Conn. : Praeger), pp. 207. 12 United Nations Conference on Trade and Development (1999), Transfer Pricing. (New York). 13 Newlon, T. Scott. (2000). â€Å"Transfer Pricing and Income Shifting in Integrating Economies,† in Sijbren Cnossen, editor, Taxing Capital Income in the European Union: Issues and Options for Reform (Oxford: Oxford University Press), pp. 214-42. 14 Mitchell, Daniel J. (2004). â€Å"The Economics of Tax Competition: Harmonization vs. Liberalization,† in 2004 Index of Economic Freedom, Marc Miles, et al. , editors, (Washington: Heritage Foundation), Chapter 2. International Research Journal of Finance and Economics – Issue 40 (2010) 4. 1. Company Profile 207 PQR Group, USA deals in design, manufacture and marketing of the state of the art photocopier machines. In addition, it also offers document management solutions, one-to-one marketing expertise and efficiency management services for various organizations in the United States and internationally. PQR India is a wholly-owned subsidiary of PQR Group, USA. PQR India commences business of import and resale of photocopier machines imported from PQR Group during the financial year 200809. The development of the arm's length price in this analysis recognizes that PQR India is a distributor of photocopier machines in India and is exposed to ordinary risk profile associated with such class of businesses. PQR India, leverages on all the valuable intellectual property rights (knowhow, copyrights etc. ) and other commercial or marketing related intangibles (brand names, trademarks etc. ) owned by PQR Group. Based on the functional analysis, PQR India has relatively less complicated operations and as such bears relatively lesser share of risks and is accordingly selected as the tested party for the purpose of carrying out the economic analysis as part of determination of transfer price on the basis of arms length principle. 4. 2. Industry Overview As per the Indian Regulations (see Appendix 1), every person who has entered into an international transaction shall keep and maintain interalia, the information and documents giving a broad description of the industry in which the assessee operates. The Indian Regulations also prescribe that the comparability of an international transaction with an uncontrolled transaction shall be judged with reference to the conditions prevailing in the markets in which the respective parties to the transactions operate. Hence, for the purposes of the transfer pricing analysis a comprehensive overview of the industry is essential. Industry overview essentially consists of industry background, evolution of industry, characteristics of marketing, emerging industry trends, key drivers, key inhibitors and future outlook for the industry. 4. 3. Functional Analysis As per the Indian Regulations, every person who has entered into an international transaction shall keep and maintain inter alia, a description of the functions performed, risks assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transaction. A functional analysis enables mapping of the economically relevant facts and characteristics of transactions between associated enterprises with regard to their functions, assets and risks. Hence a functional analysis facilitates characterization of the associated enterprises and assists in establishing a degree of comparability with similar transactions in uncontrolled conditions. 4. 3. 1. Functions performed by PQR Group PQR Group, USA deals in design, manufacture and marketing of the state of the art photocopier machines. In addition, it also offers document management solutions, one-to-one marketing expertise and efficiency management services for various organizations in the United States and internationally. In addition, it has a massive research and development center. 4. 3. 2. Functions performed by PQR India PQR India is engaged in the business of import and resale of photocopier machines imported from PQR Group. To understand the functions performed by PQR India, it is important to have an overview of the transactions taking place, which are depicted below: Transactions classified as Category A: Import of finished goods by PQR India and thereafter wholesale distribution by PQR India 208 International Research Journal of Finance and Economics – Issue 40 (2010) Transactions classified as Category B: Cos recharges are PQR Group from PQR India Functions performed by PQR India under Category A: PQR India, as a wholesale distributor performs a variety of functions including sales, marketing, after sales support, etc. Category B – Cost recharges: Under Category B transactions, cost-to-cost recharges on account of certain expenses incurred by PQR Group on behalf of PQR India are included. Assets employed: Any business requires assets (tangible or intangible) without which it cannot carry out its activities. Intangibles play a significant role in the functioning of a business and are accordingly more important. An understanding of the assets employed and owned by PQR India provides an insight into the resources deployed by PQR India and their contribution to the business processes/economic activities of PQR India. Tangibles owned by PQR India: It includes electrical installations, furniture and fixture, office equipments and computer hardware. Intangibles: PQR India being a relatively new company does not own any significant intangibles and does not undertake any significant research and development on its own account that leads to the development of non-routine intangibles. PQR India uses the trademarks, process, know-how, technical data, software, operating/quality standards etc. developed/owned by PQR Group. All companies of the group leverage from these intangibles for continued growth in revenues and profits. . 4. Overview of Inter-Company Transactions PQR India engages in the following inter-company transactions with its associated enterprises: Import of finished goods, import of spar e parts and consumables and cost recharges. The above transactions have been grouped together in two classes namely Category A and Category B which have been separately analyzed from a transfer pricing perspective. 4. 5. Selection of Tested Party The tested party is the participant in the controlled transaction whose profit attributable to the controlled transaction can be verified using the most reliable data and requiring the fewest and most reliable adjustments. In ost cases, the tested party is the least complex of the controlled taxpayers, that is, the taxpayer with the least amount of risk associated with its operations and without valuable intangibles or unique assets that may distinguish it from potential uncontrolled comparable companies. Based on the above, PQR India is clearly the tested party for purposes of this analysis. It does not own an interest in any of the valuable know-how, patents, brand names and trademarks owned by the PQR Group. PQR Group, on the other hand, may own valuable intellectual property rights including commercial and marketing intangibles. Therefore, the comparability adjustments that would be required if independent organizations were to be selected as tested parties, would be both substantial and unreliable. 4. 6. The Most Appropriate Method The ‘most appropriate method’ is that method which, under the facts and circumstances of the transaction under review, provides the most reliable measure of an arm’s length result. In determining the reliability of a method, the two most important factors that need to be taken into consideration are: (i) the degree of comparability between the controlled and uncontrolled transactions and (ii) the coverage and reliability of the available data. Because the selection of the â€Å"most appropriate method† involves a test of relative merit, a method that may not be perfect is not rejected unless some other method can be shown to be more reliable or clearly indicating to provide a better estimate of an arm's length result. International Research Journal of Finance and Economics – Issue 40 (2010) 209 Selection of the Most Appropriate Method Comparable Uncontrolled Price Method (CUP): In practice, there are two types of comparable uncontrolled transactions. The first, known as an â€Å"internal comparable,† is a transaction between one of the parties to the controlled transaction and an unrelated third party. The second, known as an â€Å"external comparable,† is a transaction between two unrelated third parties. There are no internal CUPs available for all products imported by PQR India to benchmark its transactions under Category A. PQR India is engaged in import of finished goods and spares consumables for resale in India under Category A (all related to photocopier machines). However, PQR India does not purchase same/similar products from entities other than associated enterprises. Further, during the year, until the commencement of commercial operations by PQR India, overseas gr oup entities sold some similar products to a third party in India. The third party was a Tier-II distributor of PQR Group whereas PQR India acts as a Tier-I distributor. In this way due to unavailability of adequate data to make suitable adjustments to account for the aforesaid differences, it was considered inappropriate to use the third party as an internal comparable in the present case. Therefore, CUP method was not considered for the purpose of ascertaining an arm’s length price for the international transactions of PQR India under Category A. As for external comparables, it may be highlighted that the arm's length price as far as uncontrolled enterprises are concerned, is substantially dependent upon factors such as volume, contractual terms, location differences, etc. It may not be possible to estimate with reasonable reliability and accuracy, the combined effect of such factors on per unit prices in case of external comparables. Further, abstract factors such as use of intangibles make the use of CUP method difficult for benchmarking purposes. In view of the above, there are no external comparables available, which may be considered sufficiently appropriate to warrant the use of the CUP method for Category A transactions of PQR India. However, in case of transactions in the nature of costs recharges by PQR Group to PQR India, included under Category B, the third party cost reimbursed is a CUP for the reimbursement. Keeping in view the nature of transaction and the degree of comparability, CUP was considered as the most appropriate method for this class of transactions. Consequently other methods were not considered. Cost Plus Method (CPM) PQR India is a distributor. It imports the finished products, spares and consumables from the Group companies (all related to photocopier machines) and resells them in the domestic market. In this way, in this case PQR India carries out the function of a pure reseller. Since RPM is most appropriate in cases involving the purchase and resale of tangible goods, this method was considered as the most appropriate method for deriving the arm’s length price of PQR India under Category A. The application of CPM is ordinarily appropriate in two situations, the provision of services to a related party and the manufacture of tangible goods that are sold to a related party. PQR India on the other hand, operates as a distributor under Category A. Accordingly, CPM was not considered as the most appropriate method for deriving the arm’s length price for Category A transactions of PQR India. Profit Split Method (PSM): PSM is typically applied where each party to the transaction under evaluation has significant intangible assets and/or the operations of the parties to the transaction are highly integrated and cannot be evaluated on a separate basis. Also, in general, the PSM relies primarily on the internal data and assumptions pertaining to each party to the controlled transaction instead of relying on comparable uncontrolled transactions as market benchmarks, thus making the use of the PSM ordinarily less reliable than the other methods. PQR India does not own any non-routine intangibles and further the operations of PQR India can be independently evaluated. Therefore, PSM was not considered as the most appropriate method for deriving the arm’s length price of PQR India’s international transactions under Category A. Transactional Net Margin Method (TNMM) Net profits may however, be influenced by some factors that either do not have an effect or have less substantial or direct effect on gross margins. Such factors in the case of PQR India include several 210 International Research Journal of Finance and Economics – Issue 40 (2010) extraneous factors which have been in the later write up. The losses made by the Company at the operating level, in the current financial year, is a result of these factors. The reasons for loss at operating level under Category A were: a) First year of operations and b) Acquisition of mailing business. These additional expenses incurred by the company during the year adversely impacted its profitability at the operating level. However, these expenses were necessary business expenses which had to be incurred in the first year of operations. Given the aforementioned state of affairs, in order to ensure fair comparison of the operating profitability of the company with comparable companies in the industry, one would need to make suitable economic adjustments to appropriately take into account the impact of the aforesaid acquisition of new business by the company. Conclusions of the Most Appropriate Method After reviewing all of the transfer pricing methods, we recommend given the fact and circumstances, the RPM provides the most reliable measure of an arm’s length result for Category A transactions of PQR India. CUP has been selected as the most appropriate method for the international transactions undertaken by PQR India under Category B. 4. 7. Search for Uncontrolled Comparables Databases: The two most popular and widely recognized corporate databases (i. e. , Powers & Capitaline) to identify potential uncontrolled comparables for PQR India transactions under Category A. The primarily focus was on Prowess and additional companies were considered Capitaline Plus, i. e. , companies for which data was not available in the Prowess database. Selection of time period: As per the Indian Regulations, the data to be used in analyzing the comparability of an uncontrolled transaction with an international transaction shall be the data relating to the financial year in which the international transaction has been entered into. However, data relating to a period not being more than two years prior to such financial year may also be considered if such data reveals facts which could have an influence on the determination of the transfer price in relation to the transactions being compared. The present analysis involves data analysis of companies from both databases only if they had relevant financial data for at least two out of the three financial years ending during the period April 1, 2006 and March 31, 2009. This has been done in order to eliminate, to the maximum extent possible, any variance in results caused by short-term differences in business cycles, product life cycles or business strategies of individual companies. Search Process Our comparable search strategy identified Indian independent distributors whose functions, assets and risks were broadly comparable to those of PQR India under Category A. International Research Journal of Finance and Economics – Issue 40 (2010) Search from Prowess Criteria for selection Total number of companies whose information is available on Prowess as on March 31, 2009 Number of companies having positive sales and ratio of sales trading to sales of more than 40% over the relevant time period under consideration were selected so as to capture all possible traders available in Prowess Number of companies herein sales trading as a percentage of sales was higher than 75% were short listed, in order to eliminate companies that were primarily not engaged in trading activity Selection of only those companies with a positive net worth Qualitative Analysis, to eliminate companies operating in industries other than electronics, electrical machinery and miscellaneous distributors and to eliminate controlled/controlling companies 211 No. of Companies achieving the criterion 12,994 1,050 565 496 5 Search from Capitaline Plus Criteria for selection Total number of companies whose information is available on Capitaline Plus as on March 31, 2009 Identified additional companies with positive sales over the time period under consideration were selected i. e. companies for which information was primarily not available in Prowess database Selected companies classified in the ‘Electronics’, ‘Miscellaneous Manufactured Articles’, ‘Electrical machinery other than electronics’ and ‘Non-electrical machinery’ industries Selection of only those companies with a positive net worth Qualitative An alysis, to eliminate companies not engaged in trading activities in the same/ similar industry segment and to eliminate controlled/controlling companies. No. of companies achieving the criterion 8,160 1,650 228 86 2 Finally, at the end of the above described search process from both the databases, we were left with 7 comparable companies for benchmarking Category A transactions of PQR India. 4. 8. Choice of a Profit Level Indicator (PLI) The application of RPM requires the selection of an appropriate Profit Level Indicator (PLI). The PLI measures the relationship between (i) profits and (ii) either costs incurred, revenues earned, or assets employed. A variety of PLIs can be used. Factors relevant to the selection of the appropriate profit level indicator include the reliability of the available data and the extent to which the profit level indictor takes into account costs that would be considered by independent parties. Gross Profit Margin is the ratio of Gross Profit to Sales (GP/Sales) and was selected to reliably measure the income of PQR India that it would have earned had it dealt with uncontrolled parties at arm’s length under Category A. 4. 9. Determination of Arm’s Length Results The Indian Regulations require that the Arm’s Length Price (ALP) in relation to an international transaction shall be determined by any of the prescribed methods (CUP, RPM, CPM, TNMM and PSM), being the most appropriate method. All methods other than CUP are methods that enable determination of ALP on the basis of respective margins earned by comparable uncontrolled companies. The relevant rules envisage determination of ALP by applying margins of each comparable company to the appropriate base of the enterprise. The regulations further provide that, where more than one price is determined by the most 212 International Research Journal of Finance and Economics – Issue 40 (2010) ppropriate method, the ALP shall be taken to be the arithmetical mean of such prices. An alternative practical approach to arrive at such ALP could be to compute the arithmetic mean of margins of comparable companies and apply the same to the appropria te base of PQR India to determine the ALP. Arm’s Length Results S. No. 1 2 3 4. 5. 6. 7. 8. 9. 10. 11. Name of the Company X1 India Ltd. X2 India Ltd. X3 India Ltd. X4 India Ltd. X5 India Ltd. X6 India Ltd. X7 India Ltd. Mean Median Upper Quartile Lower Quartile Data Source Prowess Prowess Prowess Prowess Prowess Capitaline Plus Capitaline Plus GP/Sales (%) 30. 00 40. 00 35. 00 28. 00 22. 00 45. 0 36. 00 33. 71 35 38. 00 29. 00 The above analysis shows that the mean GP/Sales of comparable companies under Category A is 33. 71%. Hence, prices of international transactions of PQR India under Category A, that achieve GP/Sales of 33. 71% or more would conform to the arm’s length standard prescribed under the Indian regulations. The financial results of PQR India indicate that the company has GP/Sales of 44. 20% during the year ended March 31, 2009. For Category A transactions, GP/Sales of PQR India are higher than the mean GP/Sales of comparable companies. Further, under Ca tegory B, costs recharged by PQR Group to PQR India are included. All these costs represent actual amounts paid by PQR Group to independent third parties and are recovered from PQR India, on a cost-to-cost basis. Applying the CUP method, these recharges conform to the arm’s length standard prescribed under the Indian regulations. The above analysis provides evidence that both the pricing basis itself of international transactions of PQR India during the financial year 2008-09 and the outcome of the pricing i. e. , the profitability were in accordance with the ‘Arm’s Length’ standard prescribed under the Indian Transfer Pricing Regulations. 5. Summary and Recommendations The regulations on transfer pricing in India were indeed inevitable and long overdue. The case study of PQR India clearly demonstrates the computation procedure required to be followed for scientifically determining the arm’s length price as per the provisions of transfer pricing in India. The analysis shows that the mean GP/Sales of comparable companies is 33. 71% while that of the PQR India (i. e. , the tested party) is 44. 20% during the year ended March 31, 2009 indicating that the prices of international transaction of PQR India conform to the arm’s length standard prescribed under the Indian regulations. Further, under Category B, costs recharged by PQR Group to PQR India are included. All these costs represent actual amounts paid by PQR Group to independent third parties and are recovered from PQR India, on a cost-to-cost basis. Applying the comparable uncontrolled price method, these recharges conform to the arm’s length standard prescribed under the Indian regulations. However, there are some practical problems arising out of the applications of transfer pricing regulations, which need to be addressed by the tax administrators as early as possible. These issues include absence of advance pricing agreements (APA) mechanism in India, data limitations, extremely wide definition of associated enterprises in India, stringent penalties, difficulties encountered while conducting economic analysis/benchmarking and many more. International Research Journal of Finance and Economics – Issue 40 (2010) 213 References [1] Baistrocchi, Eduardo. (2004). The Arm's Length Standard in the 21st Century: A Proposal for both Developed and Developing Countries. † Tax Notes International, Vol. 36 No. 3 (October 18), pp. 241-255. Bhagwati J. N. (1974), â€Å"On the Under Invoicing of Imports, Fiscal Polices of the Faking of Foreign Trade Declarations of the Balance of Payments†, in Bhagwati (ed. ), Illegal Transactions in International Trade, North Holland Publishing Co. Lall S. (1973), â€Å"Transfer Pricing by Multinational Manufacturing Firms†, Oxford Bulletin of Economics & Statistics, Vol. 35(3) pp. 173-95. Lall, Sanjaya. (1979). â€Å"Transfer Pricing and Developing Countries: Some Problems of Investigation,† World Development, Vol. Issue 1 (January), pp. 59-71. Li, Jinyan (2003), â€Å"International Taxation in the Age of Electronic Commerce†: A Comparative Study, Toronto: Canadian tax Foundation. Mo, Phyllis Lai Lan. (2003), â€Å"Tax Avoidance and Anti-avoidance Measures in Major Developing Economies†, Westport, Conn. : Praeger, pp. 207. Mitchell, Daniel J. (2004), â€Å"The Economics of Tax Competition: Harmonization vs. Liberalization,† in 2004 Index of Economic Freedom, Marc Miles, et al. , editors, Washington: Heritage Foundation, Cha pter 2. Murray R. Editor (1981), â€Å"Multinationals Beyond the Market: Intra-firm Trade and the Control of Transfer Pricing†, London: Harvester Press Brighton, pp. 119-32. Newlon, T. Scott. (2000), â€Å"Transfer Pricing and Income Shifting in Integrating Economies,† in Sijbren Cnossen, editor, Taxing Capital Income in the European Union: Issues and Options for Reform (Oxford: Oxford University Press), pp. 214-42. OECD (1995, as updated). Transfer Pricing Guidelines (Paris: OECD). Pagan, Jill C. and J. Scott Wilkie (1993), â€Å"Transfer Pricing Strategy in a Global Economy†, Amsterdam: IBFD Publications. Ring, Diane M. (2000). â€Å"On the Frontier of Procedural Innovation: Advance Pricing Agreements and the struggle to allocate Income for Cross Border Taxation†, Michigan Journal of International Law, Vol. 21 (winter), pp. 143-234. Schindler, Geunter and David Henderson (1985), â€Å"Inter corporate Transfer Pricing: 1985 Survey of Section 482 Audits,† Tax Notes, Vol. 29, pp. 1171-77. United Nations Conference on Trade and Development (1999). Transfer Pricing (New York). [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] 214 International Research Journal of Finance and Economics – Issue 40 (2010) Appendix I Indian Transfer Pricing Regulations Legal Position: The Finance Act 2001 introduced with effect from assessment year 2002-2003, detailed Transfer Pricing regulations vide section 92 to 92F of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) has come out with Transfer Pricing Rules – Rule 10A to Rule 10E. Applicability: Transfer pricing provisions are applicable based on fulfillment of two conditions: Firstly, there must be an international transaction. Secondly, such an international transaction must be between two or more associated enterprises, either or both of whom are non-residents. Pricing Method permitted: Arm's Length Price is to be determined by adopting any one of the following methods, being the most appropriate method: Comparable Uncontrolled Price method, Resale Price Method, Cost Plus Method, Profit Split Method, Transaction Net Margin Method, or any other method prescribed by the Central Board of Direct Taxes (CBDT). Documentation/Return: 13 different types of documents are required to be maintained. These include – 1) Enterprise-wise documents:-Description of the enterprise, relationship with other associated enterprises, nature of business carried out. 2) Transaction-specific documents:-Information regarding each transaction, description of the functions performed, assets employed and risks assumed by each party to the transaction, Economic & Market Analysis etc. 3) Computation related documents:-Describe in details the method considered, actual working assumptions, policies etc. , adjustment made to transfer price, any other relevant information, data, documents relied for determination of arm's Length price etc. A report from a Chartered Accountant in the prescribed form giving details of transactions is required to be submitted within a specific time limit. Penalty: Penalty for concealment of income or furnishing inaccurate particulars thereof100% to 300% of the tax sought to be evaded. Penalty for failure to keep and maintain information and documents in respect of International transaction2% of the value of each international transaction Penalty for failure to furnish report under section 92E- Rs. 1,00,000. OECD Guideline: No reference to OECD guidelines under Indian Transfer Pricing regulations No provisions regarding Advance Pricing Agreements Advance Pricing Agreement: under Indian law as of now Government web-link: www. incometaxindia. gov. in Source: OECD Transfer Pricing Country Profilehttp://www. oecd. org/dataoecd/9/4/42236399. pdf

Health and safety in a care home Essay

I have gained my A-Level qualifications at City Of Westminster College (Maida Vale) I have studied the following subjects English Literature, Psychology and Media Studies. I have also accomplished certificates at College Of North West London (Kilburn) in IT, English and Math’s. Therefore it is fair to say that I know how to use various Microsoft Office programs i.e. Words, Excel, and PowerPoint, I have gained my GCSE’s overseas in India, New Delhi as an international student following subjects included: Math’s, English, Social Science, Hindi and Science. I believe that I have gained valuable learning skills throughout my educational experience which has set a clear stepping stone into furthering my career. Not do I only learn in educational establishments but also I have learned a great deal on actual jobs that I have done previously. I have gained great skills such as being able to communicate with people from all walks of life, taking responsibilities for my du ties, being able to prioritize my work and take initiative. I have a positive outlook overall on life and believe that I can do anything if I set my mind to it.I have a friendly approach and a positive attitude towards work, I have always been keen on excelling my targets and to constantly perfect myself in any way that I can. I therefore find  feedback very important as it allows me to keep improving the quality of the work I do and review myself through someone’s opinion. As a Market research Interviewer (IPSOS) I spoke to participants from all walks of life about various important issues, this role required me to listen attentively to respondent, be empathetic, accurately input gained responses into the database and reach set targets on a daily basis. I find it important to always be up to date about the latest information, product knowledge and offer someone a service that will leave them with no further questions. I am a keen learner, and at the same time I like to mot ivate others to benefit from the opportunities they have available for them. Communication is very important and my main aim is always to articulate my ideas appropriately and in a way that is understood by everyone. During my time working for Beethoven Community Center as a community worker I have learned to multitask through taking up various duties i.e. by providing educational information for those that sought advice, interpret when needed for elderly residents whom could not speak English, help organize events and trips for local youth. I have gained strong organizational skills, being able to prioritize workload and have always taken full responsibility for all tasks. Having strong administration skills is essential as I had to maintain the database, input clients data acquired during sessions and provide fellow colleagues with up to date information. Being able to liaise with clients and fellow colleagues thus ensuring that everything went as agreed. I have good people skills as I have picked this up early on from working as a Social worker at Caxton Youth Club, I have developed a thorough understanding working with vulnerable people, assist youth with learning difficulties and provide the m with the right tools enabling them to better themselves. I am self motivated and have high level of energy which is a must when you’re working in any sector , as you are constantly on your feet assisting elderly and ensuring that their needs are met at all times. I am very tolerant and flexible to different situations mainly because working with people is always unpredictable. Therefore I find this no problem at all as I am able to adjust myself to different levels from young children to elderly people. I am a good team player as I listen carefully to others when they are speaking and can assimilate the messages into one vision. For  example, if my colleague is part of a project team, I’ll listen to the ideas and concerns of others. I am also patient and respectful to the voice of other team members and understand that to be a team player; I have to have an open mind to other points of view. I am quite flexible in terms of hours/days. I know that working in this field can be both stressful and rewarding however I am fully prepared for all the ups and downs. I can take ownership of projects and make sure that all boxes are ticked upon completion; I take my work at all times seriously. I am the type of person that likes to go the extra mile. I always ensure that I keep myself updated on the actual role I am fulfilling i.e. maintaining administration in the most efficient manner and ensure to being organized at all times. Being open for suggestions for example take negative feedback and transform that into something positive. I am fully aware of my surroundings and easily adaptable to environment and fellow colleagues. I am a quick learner and I want to help make a difference towards other people’s lives. I have gathered early on during my work experiences that I get a great satisfaction from seeing others improve from services provided by me. I have always completed training programs and I am someone whom sees her targets through and I hope that you provide me with the opportunity to prove this to you. I am an open-minded person and take suggestions on board that will help me better my work at all times analytical/logical approach to tasks and the ability to work under pressure. I am able to work well both on my o wn initiative and as part of a team. My main strengths are adaptability, dependability and the determination to get a job done as proven by my varied work experiences. I try to learn something new from every experience because I believe there is always room for self-improvement both personally and professionally.