India - Tribunal Rules that Transfer Pricing Provisions Are Not Applicable to Guarantees if No Costs Are Incurred
- P. Raj Kumar Jhabakh
- International Transfer Pricing Journal, 2015 (Volume 22), No 5
- 7 September 2015
This article discusses the recent judgment of the Delhi Bench of the Income Tax Appellate Tribunal in the Bharti Airtel Ltd case, wherein it was held that corporate guarantees provided by a company to its associated enterprises do not have any impact on the profits, income, losses or assets of a company, and therefore the transfer pricing provisions are not applicable.