Meaning of international transaction

A transaction between two or even more associated businesses that involves the purchase, sale, lease, or provision of tangible or intangible property, the rendering of services, the lending or borrowing of money, or any other action that has an impact on the profits, income, losses, or assets of such businesses is referred to as a "international transaction." A consensual agreement or arrangement between two or even more associated enterprises for the utilisation or apportionment of, or any participation to, any cost or expense incurred or to be accumulated in connection with a benefit, service, or facility provided or to be supplied to any one or more of such enterprises shall be considered to be such an arrangement.

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If there is a prior agreement regarding the relevant payment between the other person and the associated enterprise, or if the terms of the relevant transaction are substantively decided between the other person and the associated enterprise, then a payment entered into by a venture with a person other than an associated enterprise shall be considered to be a transaction entered into between two associated enterprises.

The following are included in the term "international transaction":-

(a) the acquisition, sale, transfer, leasing, or use of tangible property, such as a structure, a vehicle for transportation, equipment, tools, plants, furniture, commodities, or any other kind of object;

(b) the acquisition, sale, transfer, leasing, or use of intangible property, including the passing of ownership or the granting of use of rights relating to land use, copyrights, patent applications, trademarks, license fees, franchises, customer lists, marketing channels, brands, commercial secrets, know-how, industrial property rights, exterior design or practical and new design, or any other commercial or business rights of a like nature; Marvellous topic on 80g deduction begins here.

(c) any kind of long- or short-term borrowing, loan, or guarantee; the acquisition or sale of marketable securities; any kind of advance; payments or postponed payments; receivables; or any other debt incurred during the course of business; capital financing;

(d) offering services, such as market analysis, market expansion, marketing management, administration, technical assistance, maintenance, design, agency consultancy, scientific research, and legal or accounting services;

(e) an agreement between an enterprise and a related enterprise on a business restructuring or reorganisation, regardless of whether it would affect the profit, income, losses, or assets of those companies either at the time of the agreement or in the future.

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