HC rules against Coca-cola in TP case !!

CA. Rajeev Aggarwal (Chartered Accountant) (3424 Points)

06 January 2009  

The Punjab & Haryana High Court has ruled against Coca-Cola India’s contention that the proof of profit transfer outside India is a precondition for applying transfer pricing rules.

Coca-Cola had approached the high court after it was served a notice on transfer pricing.

The soft drink company had an agreement to offer advisory services to Britco at the rate of cost plus 5%.

Coca-Cola’s main contention was that transfer pricing rules cannot be applied in the absence of prima facie evidence of profit transfer outside India.