The transfer pricing considerations of Suzuki’s 100% subsidiary in India
February 04, 2014
Car manufacturer, Suzuki, has decided to set up a 100% subsidiary in Gujarat, India, in addition to its majority-owned listed-entity, Maruti Suzuki. Wider business decisions aside, there are transfer pricing implications, which must be considered by any multinational in this position.
Considering Maruti Suzuki’s past problems with the taxman, it would be reasonable for Suzuki shareholders to question the multinational’s decision in this instance because the 100% subsidiary, Suzuki Motors Gujarat, will mean even more scrutiny from the tax authorities.
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