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Do the transfer pricing rules apply in respect of transactions between head office (HO) and a branch office/project office?

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Rahul Rahul
Answered on February 13,2020

Where a foreign enterprise has a BO/PO in India, the BO/PO would constitute a non-resident for Indian tax purposes and a separate enterprise under Section 92F(iii) of the Act. Accordingly, the transaction between the BO/PO and the HO will constitute as an international transaction under section 92B of the Act and will be required to meet the arm’s length criteria from an Indian transfer pricing perspective.

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