(1)For the pu rposes of this section and
sections 92, 92C, 92D and 92E, “international transaction” means a transaction between two or more
associated enterprises, either or both of whom are non -residents, in the nature of purchase, sale or lease of
tangible or intangible property, or provision of services, or lending or borrowing money, or any other
transaction having a bearing on the profits, income, losses or assets of such enterprises, and shall include
a mutual agreement or arrangement between two or mor e associated enterprises for the allocation or
apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection
with a benefit, service or facility provided or to be provided to any one or more of such enterprises.
(2)A transaction entered into by an enterprise with a person other than an associated enterprise shall,
for the purposes of sub -section ( 1), be 1[deemed to be an international transaction] entered into between
two associated enterprises, if there exists a prior agreement in relation to the relevant transaction between
such other person and the associated enterprise, or the terms of the relevant transaction are determined in
substance between such other person and the associated enterprise 2[where the enterp rise or the associated
enterprise or both of them are non -residents irrespective of whether such other person is a non -resident or
not].
3[Explanation .-For the removal of doubts, it is hereby clarified that -
(i)the expression “international transaction” shall include -
(a)the purchase, sale, transfer, lease or use of tangible property including building,
transportation vehicle, machinery, equipment, tools, plant, furniture, commodity or any other
article, product or thing;
(b)the purchase, sale, transfer, lease or use of intangible property, including the transfer of
ownership or the provision of use of rights regarding land use, copyrights, patents, trademarks,
licences, franchises, customer list, marketing channel, brand, commercial secret, know -how,
industrial property right, exterior design or practical and new design or any other business or
commercial rights of similar nature;
(c)capital financing, including any type of long -term or short -term borrowing, lending or
guarantee, purchase or sa le of marketable securities or any type of advance, payments or deferred
payment or receivable or any other debt arising during the course of business;
(d)provision of services, including provision of market research, market development,
marketing manage ment, administration, technical service, repairs, design, consultation, agency,
scientific research, legal or accounting service;
(e)a transaction of business restructuring or reorganisation, entered into by an enterprise
with an associated enterprise, i rrespective of the fact that it has bearing on the profit, income,
losses or assets of such enterprises at the time of the transaction or at any future date;
(ii)the expression “intangible property” shall include -
(a)marketing related intangible assets, such as, trademarks, trade names, brand names, logos;
(b)technology related intangible assets, such as, process patents, patent applications,
technical documentation such as laboratory notebooks, technical know -how;