IJM (India) TP Alert

Transaction amongst taxpayer and Indian permanent establishment of its overseas group entity does not fall within the ambit of "international transaction" and thus, is not subject to Indian Transfer Pricing provisions

Facts of the case

IJM (India) Infrastructure Ltd ("the taxpayer") is a subsidiary Company of IJMII (Mauritius) Ltd which in turn is a wholly owned subsidiary of IJM Corporation Berhad, Malaysia (IJM Malaysia). During the assessment year under review, the taxpayer has entered the certain transactions with its associated enterprises ("AEs") viz. Delhi based project office [permanent establishment ("PO")] of IJM Malaysia; Delhi based joint-venture ("JV") namely "IJM-IJMIl JV" between taxpayer and IJM Malaysia; the Indian PE, located in Delhi, of Road Builder (M) SDN Bhd, an another group entity/ AE of the taxpayer; and RBM Pati JV (based out of Delhi, India).