International Transaction - Section 92B - International Taxation - Income Tax

International Transaction - Section 92B (1) International Transaction: International transaction means a transaction between two or more associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale, transfer, lease or use of tangible property; or purchase, sale, transfer, lease or use of intangible property; capital financing including lending or borrowing or guarantee; or 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; transaction of business restructuring or reorganisation, entered into by an enterprise with an associated enterprise, irrespective of the fact that it has bearing on the profit, income, losses or assets of such enterprises at the time of the transaction or at any future date It shall also include a mutual agreement or arrangement between two or more associated enterprises for the allocation of any cost or expense incurred in connection with a benefit, service, facility provided to any one or more such enterprises. If both the associated enterprises are non-residents, then Transfer Pricing shall apply only if income of one of the non-residents is assessable under the Indian Income-tax Act. The expression Intangible Property shall include - (a) Marketing related intangible assets, such as, Trademarks, trade names, brand names, logos (b) Technology related intangible assets, such as, Process patents, patent applications (c) Artistic related intangible assets, such as Literary works and copyright, musical compositions (d) Data processing related intangible assets, such as Proprietary computer software, software copyrights, automated databases etc. (e) Engineering related intangible assets, such as, industrial design, product patents, trade secrets, engineering drawings and schematics. (f) Customer related intangible assets, such as, Customer lists, customer contracts, etc. (g) Contract related intangible assets, such as, Favourable supplier, contracts, licence agreements, etc. (h) Human capital related intangible assets, such as, Trained and organised work force, employment agreements, etc. (i) Location related intangible assets, such as, Leasehold interest, mineral exploitation rights, etc. (j) Goodwill related intangible assets, such as, institutional goodwill, professional practice goodwill, etc. (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. (2) Transactions between unrelated persons Deemed as international Transaction: A transaction between an enterprise and an unrelated person shall be deemed to be a transaction between associated enterprises if in relation to that transaction There exists a prior agreement between such other person and the associated enterprise; or The terms of the transaction are determined between such unrelated person and the associated enterprise.