Brand usage – not an international transaction

Hyundai Motor India Limited Vs DCIT (ITAT Chennai) Facts of the case: The taxpayer is engaged in the business of manufacturing and sale of passenger cars within and outside India. It is a wholly-owned subsidiary of Hyundai Motor Company, Korea (HMC). The Transfer Pricing Officer (TPO) during the course of assessment proceedings held that the tax payer was mandated to use the brand name ’Hyundai‘ in every vehicle manufactured by it as per the technology agreement. This, the TPO argued, resulted in enhancement of the brand value of HMC, the legal owner. The TPO concluded that the tax payer ...