Indian tribunal forces drug company to change transaction methods
April 08, 2009
An Indian tax tribunal has ordered a Belgian drug company to rethink its transfer pricing methods for transactions with its Indian subsidiary, despite referring the case back to the transfer pricing officer.
The Mumbai Bench of the Income Tax Appellate Tribunal ruled that the use by UCB India Private Limited (an Indian subsidiary of a Belgian drug company) of the entity-wide transaction net margin method (TNMM) should be rejected because it was not practical to look at transaction-level margins.
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