https://www.taxtmi.com/caselaws?id=765210 The ITAT Ahmedabad ruled that transfer pricing provisions apply to transactions between a foreign enterprise and its Indian permanent establishment (PE). The tribunal held that a PE constitutes a separate enterprise from its head office for transfer pricing purposes, satisfying the non-resident requirement under section 92B(1). The court determined that both parties being non-residents fulfills the statutory condition for international transactions. The tribunal rejected arguments that no income arises from PE-head office transactions, emphasizing that Article 7(2) of the India-China DTAA requires treating the PE as a distinct separate enterprise dealing independently. The underlying philosophy of transfer pricing provisions and treaty articles align in applying arm's length principles to prevent profit shifting outside India. en-us Mon, 11 Nov 2024 00:00:00 +0530 Tue, 28 Jan 2025 08:24:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765210 The ITAT Ahmedabad ruled that transfer pricing provisions apply to transactions between a foreign enterprise and its Indian permanent establishment (PE). The tribunal held that a PE constitutes a separate enterprise from its head office for transfer pricing purposes, satisfying the non-resident requirement under section 92B(1). The court determined that both parties being non-residents fulfills the statutory condition for international transactions. The tribunal rejected arguments that no income arises from PE-head office transactions, emphasizing that Article 7(2) of the India-China DTAA requires treating the PE as a distinct separate enterprise dealing independently. The underlying philosophy of transfer pricing provisions and treaty articles align in applying arm's length principles to prevent profit shifting outside India. Case-Laws Income Tax Mon, 11 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765210