The ‘Maruti’ Suzuki India Ltd v. Additional Commissioner of Income Tax Transfer Pricing Officer of New Delhi decision is a novel Indian judicial decision that attempts to address the concept of marketing intangibles. While following the US decision in DHL Corp. et al. v. Comm’r, which also addressed marketing intangibles, the High Court of Delhi’s decision is fraught with inconsistencies and impracticality notwithstanding its credible view of the marketing intangible concept. While the Indian Supreme Court has set aside this decision and the TPO will examine the matter in accordance with existing law, the decision has put into play more questions and concerns than answers. At a minimum, practitioners and the Organisation for Economic Co-operation and Development (OECD) Committee on Fiscal Affairs, which address the transfer pricing aspects of intangibles, have a strong basis from which to address these questions and concerns and provide meaningful guidance.
Intertax