Facility sharing arrangements allowed under FDI policy if arm's length pricing and lease income remains proportionally low. Facility sharing agreements between group companies through leasing/sub leasing arrangements for business purposes will not be treated as real estate business under the Consolidated FDI Policy provided such arrangements are at arm's length in accordance with applicable tax pricing standards and annual lease rent earned by the lessor company does not exceed a small proportion of its total revenue.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Facility sharing arrangements allowed under FDI policy if arm's length pricing and lease income remains proportionally low.
Facility sharing agreements between group companies through leasing/sub leasing arrangements for business purposes will not be treated as real estate business under the Consolidated FDI Policy provided such arrangements are at arm's length in accordance with applicable tax pricing standards and annual lease rent earned by the lessor company does not exceed a small proportion of its total revenue.
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