Document background
The Intercompany Agreement Transfer Pricing template is essential for multinational enterprises and domestic groups operating in India to document and regulate their internal pricing arrangements. This document becomes necessary when related entities within a corporate group engage in transactions involving goods, services, intellectual property, or financial arrangements. It ensures compliance with Indian transfer pricing regulations, which require extensive documentation and demonstration of arm's length pricing. The agreement helps companies meet their statutory obligations under Sections 92-92F of the Income Tax Act, 1961, and provides evidence of proper transfer pricing practices during tax assessments. It is particularly crucial given India's strict transfer pricing regime and significant penalties for non-compliance.
