Transfer pricing applicability

This query is : Resolved

CA shanthi (Querist)
Follow

16 September 2011 Whether Transfer pricing will be applicable in relation to the transactions with Branch located in Taiwan....

Transactions are entered with its own branch only...For transfer pricing purpose, branch has to be considered as a separate enterprise?????

Pragnesh

Pragnesh (Expert)
Follow

16 September 2011 Transfer Pricing is applicable only when transaction between associated enterprises during the financial year. Extract of relevant sections for the definition of “associated enterprises”.

92A(2) two enterprises shall be deemed to be associated enterprises if, at any time during the previous year,—]

clause (a) one enterprise holds, directly or indirectly, shares carrying not less than twenty-six per cent of the voting power in the other enterprise; or

clause (b) any person or enterprise holds, directly or indirectly, shares carrying not less than twenty-six per cent of the voting power in each of such enterprises;