The yearly compliance requirements for a foreign subsidiary operating in India include the following: submission of financial reports, conducting audits, holding an Annual General Meeting (AGM), filing taxes, adhering to corporate governance standards, making regulatory submissions, complying with FEMA/RBI regulations, paying statutory fees and maintaining a compliance calendar. The latter is crucial in ensuring all legal obligations and regulatory deadlines are met on time.

In India, the regulations for transfer pricing are stipulated by the Income Tax Act, particularly sections 92 to 92F and the transfer pricing regulations under Rule 10A to 10E. These guidelines mandate that related businesses set transfer prices for transactions including goods sales, service provisions, or intangible assets transfers. The aim is to ensure these transactions occur at arm's length in order to deter tax evasion or manipulation. To prove adherence to these rules, companies are required to keep comprehensive records and meet transfer pricing reporting obligations as per the directives of tax authorities.

In India, the concept of transfer pricing is employed to control the prices exchanged between related entities within multinational corporations, thereby averting any potential tax evasion. Various methods are utilized in this process such as Comparable Uncontrolled Price (CUP), which involves price comparisons with unrelated parties; Cost Plus, where profit is added to costs; Resale Price method that compares resale prices; Transactional Net Margin Method (TNMM) that compares net margins and Profit Split method which divides profits based on contributions. Companies select these methods depending on their transactions and maintain meticulous records for adherence to tax regulations.

In India, the term "transfer pricing return" pertains to the set of documents and data submitted by corporations involved in related party transactions. This is done in adherence to transfer pricing rules and regulations. The return encompasses specifics like the type and worth of dealings with associated parties, the selected transfer pricing technique, comparable utilized for benchmarking purposes, financial reports, among other pertinent details. The primary objective is to validate that transactions are executed at arm's length while also substantiating the company's chosen pricing methodologies.

In India, the due date for filing the transfer pricing report is typically on or before the due date for filing the income tax return. For most companies, this would be September 30th of the assessment year following the relevant financial year. However, it's essential to check the specific deadlines each year as they may be subject to change based on regulatory updates.