Question

What is the correlation between the export import policy with International Taxation? (Relate the answer with Transfer Pricing)

Answer 1

Export Import policy also known as Exim policy provides data related to imports and export of goods and services. The imposition of tax provides same effect on import and export. The Exim policy includes the service exports, removal of quantitative restrictions, Schemes for special economic zones etc. The taxation in import and export makes benefit t the countries. Tax for import goods promotes the domestic industry in their production.
The major objectives of Exim policy are accelerating economic growth, sustainability of economic growth; improve technological strength and efficiency and distribution of quality products and services. To attain sustainability in both importer and exporter country, there is a tax rate is inevitable. This tax makes revenue fro the country. Sometimes taxes become a benefit and also a curse. Corporate tax considered as the highest revenue earning tax. This enhanced through the efficient Exim policy. There is imposition of effective management place. There is conflict exist between income from book of accounts and the taxable income which computed by income tax Act. The income computation and Disclosure Standards will reduce the conflict between these two.