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ThynkTax /Tax Reference /Case Laws /Watson Pharma - Marketing intangibles

Watson Pharma - Marketing intangibles

Income Tax Appellate Tribunal·2015·ITR
Facts

Indian subsidiary creating marketing intangibles for foreign parent.

Issue

Compensation for brand-building.

Held

ITAT applied bright-line test to determine excessive marketing spend creating intangibles benefiting the AE. (Later reversed by Maruti Suzuki SC.)

Ratio

Pre-Maruti framework for AMP transfer pricing.

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