01 November 2012
Dear experts/ Respondents having exposure of corporate tax laws,
My query is There is US based wholly owned subsidiary which provides services from India to clients at international location on behalf of Company / Inc in US. For that Inc. will pay all admin cost & salaries of wholly owned subsidiary in India. As per FDI policies for wholly owned subsidiary all acts & regulations including income tax act are applicable as if it is Indian company. Is Transfer pricing will applicable in this case? because in website of Deloitei there is a case law of Whirlpool Inc/Pvt Ltd. in that specified that if there are no revenues Transfer pricing provisions will not apply. Looking for your reply only if you know.
Nature of Business / Indutry: Like BPO Assisting in Medical suits /cases, Callings / Transcription.
02 November 2012
No, you have misunderstood the thing.
If the Indian Company is wholly owned subsidiary of US Co. then transfer pricing shall apply for ANY transaction between "ASSOCIATED Enterprises" i.e. US Company and Indian Subsidiary.
CAclubindia
