(a) the details of the Multi National Companies (MNCs) who got 100 percent subsidiaries
and the year since they are operating in the country;
(b) whether these MNCs are manufacturing their products or they only importing the
finished drug;
(c) if so, the details thereof along with products range and the profit margins; and
(d) the steps being taken by the Government to prevent the fraudulent transfer pricing?
MINISTER OF THE STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS AND MINISTER OF THE
STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI B.K.HANDIQUE)
(a) to (d): According to information made available by Department of Industrial Policy &
Promotion 100% Foreign Equity was approved in Drugs & Pharmaceutical Sector from 1.1.2003
to 30.9.2006 for 27 Companies. These Companies are mainly engaged in the manufacturing of
Bulk Drugs, Research and Development, buying/selling etc. Statutory framework has been
provided under Section 92 to Section 92F of the Income Tax Act, 1961 to prevent manipulations
in transfer pricing.