Change Transfer Pricing Norms, Says Assocham

New Delhi, December 24: | Updated: Dec 25 2002, 05:30am hrs
The application of arms lengths principle for transaction of purchases and sales between the associated enterprises disregarding practical situations will be to the disadvantage of the domestic entities and, therefore, transaction of export sales to non-resident associated enterprise should not be covered by the transfer pricing regulations, according to Associated Chambers of Commerce and Industry(Assocham).

There are many situations where the non-resident associated enterprises help the domestic companies to promote and establish export markets, a release from the chamber said, adding prices of domestic entities are not competitive and many of the associated enterprises are large multinational companies having global presence and capable of creating markets for their Indian affiliates.