The Indian Income Tax Act contains a specific set of provisions relating to Transfer Pricing which were introduced in 2001. These provisions mainly deal with the identification of associate enterprises (international and domestic), the applicability of the provisions to a specified set of transactions, and the principles for computation of arm’s length price for such transactions. Associated Enterprises are identified under different scenarios mainly on the basis of equity participation, management, control, debt, use of intangibles, supply of raw materials, etc. Arms Length price is determined on the basis of methods prescribed in the rules.