Advertising & Marketing Promotion (AMP) an International Transaction?

Section 92B of the Income Tax Act defines `international transaction’. So let's start with a simplified reading of the section. Simplifying Section 92B - International Transaction The section primarily classifies the combination of party types and transactions that results in an international transaction. Party types Transaction between two or more associated enterprises, either or both … Continue reading Advertising & Marketing Promotion (AMP) an International Transaction?

What constitutes an Associated Enterprise?

Section 92A of the Income Tax act provides the meaning of Associated Enterprise, yet there has been considerable litigation around the subject. In this article, we will take a look at what's the much ado all about. Simplifying Section 92A Significance Unless a domestic enterprise is linked with a foreign “associated enterprise”, transfer pricing provisions … Continue reading What constitutes an Associated Enterprise?

TPO’s role limited to determining Arm’s Length Price; Not required to comment on commercial wisdom of transaction

ITAT Pune in the case of Eaton Fluid Power Ltd. v ACIT has held that the TPO cannot sit in judgment of the business model of the assessee and its intention to avail or not to avail any services from its AEs. It further held that role of TPO is to determine the Arm's Length Price … Continue reading TPO’s role limited to determining Arm’s Length Price; Not required to comment on commercial wisdom of transaction

The Right Markup: A study on Transfer Pricing in Private Equity

Private Equity (PE) funds have been a part of India’s emerging story for more than a decade where many investments have now moulded the investment climate in India. In this article we will look at some of the issues faced by the Indian affiliates of global PE funds with respect to Transfer Pricing regulations in … Continue reading The Right Markup: A study on Transfer Pricing in Private Equity