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GlossaryITXWhat is Associated Enterprise?
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What is Associated Enterprise?

An associated enterprise is an enterprise that participates, directly or indirectly, in the management, control or capital of another, bringing their transactions within transfer-pricing rules.

Bare Law Reference: Section 92A, Income-tax Act.

Detailed Explanation

How it works

Section 92A defines the relationship through tests such as 26% voting power, substantial loans, dependence on intangibles, or common control.

Frequently asked questions

What is an associated enterprise?

An enterprise linked to another by management, control or capital, as defined in Section 92A.

Why does it matter?

Transactions between associated enterprises are subject to transfer-pricing rules and Form 3CEB.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • AEs are linked by management, control or capital.
  • Defined by Section 92A tests (e.g. 26% voting).
  • Their transactions trigger transfer pricing.
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