Transfer Pricing

Can sumone through light on the applicability of TP provisions in case of an Indian Company having a Joint Venture outside India with Foreign Company as Joint Venturers....In simple words my query is whether a Joint Venture established outside India qualifies for an associated enterprize within the meaning of TP Provisions..

Replies (6)
Originally posted by : Amir
Can sumone through light on the applicability of TP provisions in case of an Indian Company having a Joint Venture outside India with Foreign Company as Joint Venturers....In simple words my query is whether a Joint Venture established outside India qualifies for an associated enterprize within the meaning of TP Provisions..

In transfer pricing any income arising from an international transaction shall be computed having regards to arm's length price (ALP).
International Transaction - in your case the income of an Indian Company (from joint venture outside india with Foreign Company) is an international transaction if the Foreign Company is non resident of India. Thus income of the Indian Company will be computed with reference to ALP if one of the condition of Deemed Associated Enterprise U/S 92A (2) is satisfied.

your question does not provide the residential status of foreign company and any indication of satisfaction of the condition of Deemed Associated Enterprise U/S 92A (2). thus answer is based on above assumptions

 

 

 

 

 

yes

yes TP applies in ur case

yes

Hello Amir,

Hope you wll be fine and thanks for a good querry,

Our Company is having a joint venture with a company in Canada.and we are following the provisions of TP in this case.

 

 

Dear Rajat Sir,

Ya , I m good.......! and hope the same for u.........

Thanks for sharing ur experience on this query...............!

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