Transfer pricing

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Sai Sundar (Querist)
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24 December 2013 Dear Sir
Sec 92A(1) gives a general definition of "Associated Enterprises" for International Transactions while Sec 92A(2) talks about list of situations wherein two enterprises will be deemed to be Associated Enterprises.

As per Sec 92A(2)(i)
Where the goods or articles manufactured and processed by one enterprise,
(say, enterprise A) are sold
(i) to another enterprise (say, enterprise B)
or
(ii) sold to another enterprise (say, enterprise C) specified by enterprise
B,and the prices and other conditions relating thereto are influenced by
enterprise B,
then enterprises A and B shall be associated enterprise.
Now unlike Sec 92A(2)(h) there is no min criteria of 90% stipulated. Does this mean all the enterprises to which goods are sold by the assessee come under "associated Enterprise"

Kindly clarify

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 December 2013 yes it has to be an associate enterprice.

Sai Sundar

Sai Sundar (Querist)
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24 December 2013 thanks for ur response sir

Will this imply that an assesse's every sale (of manufactured goods) to a non resident would attract Transfer Pricing provisions Sec 92C (computation of arm's length price), Sec 92E ( form 3CEb) etc....,,?

Sai Sundar

Sai Sundar (Querist)
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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 December 2013 but they must be an associate enterprise first and then only this chapter is applicable.

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