Our company is a manufacturing company in the filed of Oil and natural gas. We got a work order from a foreign company based in Italy. As per work order, we have to manufacture spare parts as per their specifications and has to sell the same to them at the end of the prescribed period.
Now my query is , by virtue of this work order, shall our company and the said foreign company will become "Associated Enter Prises" as per Sec 92A(2)(i)?
if so, what will be the best suited method for determining ALP?
13 June 2014
no. asssociated enterprises are defined under section 92A. please check whether your company and the italian company are associated enterprises or not.
Will these co,s become " deemed associated enterprises" by virtue of subsection 2 of section 92A which is reproduce here for your ready reference/
If, so whether our company needs to obtain certificate in form 3CEB in addition other discloure requirements?
The goods or articles manufactured or processed by one enterprise, are sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating thereto are influenced by such other enterprise.
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