92A
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Meaning
of Associated enterprises.
(a) shares carrying not less than twenty-six per cent
(b) loan advanced by one enterprise to the other enterprise
constitutes not less than fifty-one per cent of the book value of the total
assets
(c) guarantees not less than ten per cent of the total
borrowings
(d) more than half of the board of directors or members of
the governing board
(e) more than half of the directors or members of the
governing board,
(f)
manufacture or
processing of goods or articles or business carried out by one enterprise is
wholly dependent.
(g) ninety per cent or more of the raw materials and
consumables
(h) Influencing the pricing.
(i)
where one
enterprise is controlled by an individual, the other enterprise is also
controlled by such individual or his relative
(j)
where one
enterprise is controlled by a Hindu undivided family, the other enterprise is
controlled by a member of such Hindu undivided family
(k) where one enterprise is a firm, association of persons
or body of individuals, the other enterprise holds not less than ten per cent
interest in such firm
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92B
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Meaning
of International Transaction
(a) purchase, sale, transfer, lease or use of tangible
property
(b) purchase, sale, transfer, lease or use of intangible
property
(c) capital financing, including any type of long-term or
short-term borrowing, lending or guarantee
(d) provision of services, including provision of market
research, market development, marketing management, administration, technical
service, repairs, design, consultation, agency, scientific research, legal or
accounting service;
(e) transaction of business restructuring or
reorganisation, entered into by an enterprise with an associated enterprise
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92B(ii)
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Meaning
of Intangible Property
(a) trademarks, trade names, brand names, logo
(b) process
patents, patent applications, technical documentation such as laboratory
notebooks, technical know-how;
(c) literary works and copyrights, musical compositions,
copyrights, maps, engravings
(d) proprietary computer software, software copyrights,
automated databases, and integrated circuit masks and masters;
(e) industrial design, product patents, trade secrets,
engineering drawing and schema-tics, blueprints, proprietary documentation
(f)
customer lists,
customer contracts, customer relationship, open purchase orders;
(g) favourable supplier, contracts, licence agreements,
franchise agreements, non-compete agreements;
(h) trained and organised work force, employment
agreements, union contracts;
(i)
leasehold
interest, mineral exploitation rights, easements, air rights, water rights;
(j)
institutional
goodwill, professional practice goodwill, personal goodwill of professional,
celebrity goodwill, general business going concern value;
(k) methods, programmes, systems, procedures, campaigns,
surveys, studies, forecasts, estimates, customer lists, or technical data
(l)
any other similar
item that derives its value from its intellectual content rather than its
physical attributes
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92C
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Computation
of arm length Price
Select
most appropriate method
(a) comparable uncontrolled
price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net
margin method;
(f) such other method as
may be prescribedby the Board
where more than one price is determined
by the most appropriate method, the arm’s length price shall be taken to be
the arithmetical mean of such prices:
New
Clause: that where more than one price is determined by the most
appropriate method, the arm’s length price in relation to an international
transaction or specified domestic transaction undertaken on or after the 1st
day of April, 2014, shall be computed in such manner as may be prescribed and
accordingly the first and second proviso shall not apply.
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