PKF Sridhar & Santhanam LLP, Chartered Accountants Taxation Associate Interview Questions, Process, and Tips

FAR Analysis is a financial accounting and reporting analysis used to evaluate the financial health of a company.

• FAR Analysis involves analyzing a company's financial statements to assess its financial performance and position

• It helps in identifying trends, patterns, and anomalies in financial data

• FAR Analysis is used by investors, creditors, and other stakeholders to make informed decisions about a company

• It includes ...read more

Secondary Adjustment is a transfer pricing mechanism to adjust the price of goods or services between related parties.

• It is used to ensure that the profits of related parties are not understated or overstated due to transfer pricing.

• It involves making an adjustment to the price of goods or services to reflect the arm's length price that would have been charged between unrelated parties.

• The adjustment can be made either...read more

Transfer pricing methods are used to determine the price of goods and services transferred between related entities.

• There are several transfer pricing methods, including the comparable uncontrolled price method, the resale price method, and the cost plus method.

• The comparable uncontrolled price method compares the price of a controlled transaction to the price of an uncontrolled transaction.

• The resale price method dete...read more

APA stands for Advance Pricing Agreement. It is an agreement between a taxpayer and tax authority regarding transfer pricing.

• APA is a mechanism to avoid transfer pricing disputes between taxpayers and tax authorities.

• It provides certainty to taxpayers regarding their transfer pricing arrangements.

• There are three types of APA: Unilateral, Bilateral, and Multilateral.

• Unilateral APA is an agreement between taxpayer and ta...read more

Different methods are used for different tax calculations. Examples include FIFO, LIFO, and specific identification.

• FIFO (First In, First Out) is used when the oldest inventory is sold first.

• LIFO (Last In, First Out) is used when the newest inventory is sold first.

• Specific identification is used when each item in inventory is individually identified and tracked.

• Depreciation methods include straight-line, double-declini...read more

Articleship experience is essential for a Taxation Associate role.

• Articleship provides practical exposure to tax laws and regulations.

• It helps in developing skills like tax planning, compliance, and research.

• Articleship experience demonstrates the candidate's ability to work in a professional environment.

• It showcases the candidate's understanding of accounting principles and financial statements.

• Examples: Assisting in ...read more

Transfer pricing offers a dynamic and challenging career path with opportunities for growth and specialization.

• Transfer pricing allows for exposure to a wide range of industries and multinational companies.

• It involves working on complex international tax issues and regulations.

• Transfer pricing professionals play a crucial role in helping companies optimize their global tax strategies.

• The field offers continuous learnin...read more

Transfer pricing is the practice of setting prices for goods and services sold between related entities within a company.

• It involves determining the value of goods and services transferred between different divisions or subsidiaries of a company

• Types of transfer pricing include cost-based, market-based, and profit-based methods

• Cost-based methods involve determining the cost of producing a good or service and adding a m...read more

TP was introduced in India to prevent tax evasion by multinational companies.

• TP stands for Transfer Pricing, which refers to the pricing of goods and services transferred between related parties, such as subsidiaries of a multinational company.

• Multinational companies were using transfer pricing to shift profits to low-tax countries and avoid paying taxes in India.

• To prevent this, India introduced TP regulations in 2001...read more

Master filing threshold limits depend on the type of tax and entity

• Master filing is applicable for entities with multiple branches or locations

• For GST, the threshold limit is Rs. 5 crores turnover in the previous financial year

• For income tax, the threshold limit is Rs. 50 crores turnover in the previous financial year

• For TDS, the threshold limit is Rs. 50 lakhs in the previous financial year

• Master filing helps in strea

Regular assessment is for regular taxpayers while TP assessment is for transfer pricing related transactions.

• Regular assessment is done for taxpayers who have regular income and transactions.

• TP assessment is done for transactions related to transfer pricing between related parties.

• Regular assessment is done annually while TP assessment can be done anytime during the year.

• Examples of regular assessment include income ta...read more