BMC Associates says Replied on 9th May,2026 08:39 AM

Yes, if a foreign company becomes a resident in India, transfer pricing provisions may still apply if it enters into international transactions or specified domestic transactions with its associated enterprises. Residential status alone does not exempt a company from transfer pricing regulations under the Income Tax Act. The main objective of transfer pricing provisions is to ensure that transactions between related parties are conducted at arm’s length price to prevent profit shifting and tax avoidance. Therefore, even after becoming resident in India, the company must comply with documentation, reporting, and arm’s length pricing requirements wherever applicable. For professional guidance on transfer pricing and international taxation, many businesses rely on experienced chartered accountant firms in Gurgaon like BMC Associates. Their team of chartered accountant Gurgaon professionals assists companies with transfer pricing compliance, audits, and tax planning. If you need support from a trusted CA firm in Gurgaon or expert CA in Gurgaon, professional consultation can help ensure proper compliance with Indian tax laws.