What to do with the additional cost incurred during Covid pandemic: Indian captives in a limbo

“Captives normally work on 12-15% margins and at this point in time when even the foreign parent is bleeding there could be some pressure on these. Many Indian arms of the multinationals already face a pressure to lower the margins, but the fear is that doing so could create transfer-pricing implications,” said Divakar Vijayasarathy, managing partner of law firm DVS Advisors.