Transfer Pricing

  • Article on Corporate Guarantee – an International Transaction? – Published by Corporate Law Reporter

    April 16 2014

    There are a lot of developments taking place in India as well as globally on Transfer Pricing front. In that respect, recently Delhi Income Tax Tribunal in the case of Bharti Airtel Limited  has held that Corporate Guarantees issued by parent to its foreign subsidiary is not covered by Indian transfer pricing provisions. This is despite the fact that, by virtue of Finance Act, 2012 the definition of the term International Transaction was clarified to have a wider scope to cover capital financing transactions and consequentially subject to Indian transfer pricing law. In the global context also corporate guarantees are subjected to transfer pricing analysis.

    An attempt is made to analyse certain Indian rulings ( before & after amendment of Finance Act) as well as Foreign Court rulings on the subject matter. Important principles of OCED guidelines on Transfer Pricing have also been dealt with in the attached article.

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  • Corporate Guarantee extended to a Foreign Associated Enterprise (AE) – Whether a International Transaction and subject to Indian Transfer Pricing Law?

    March 20 2014

    By virtue of Finance Act, 2012 the definition of the term International Transaction was clarified to have a wider scope to cover capital financing transactions. In view of the same it is debated as to whether a corporate guarantee by an Indian parent to its foreign subsidiary falls within the ambit of the definition of International Transaction and consequently is subjected to Indian Transfer Pricing Law???

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  • CBDT Issues Important Directives On Safe Harbour Rules

    December 25 2013

    Pursuant to the Safe Harbour Rules in Rules 10TA to 10TG, the CBDT has issued a letter dated 20.12.2013 in which it has laid down important directives and clarifications on the manner in which the Safe Harbour Rules are meant to be implemented. The directives and clarifications are as follows:

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