Specify with brief reason, whether the following acts can be considered as an act of (i) Tax management; or (ii) Tax planning; or (iii) Tax evasion: or (iv) Tax avoidance : (ii) A foreign company has an Indian subsidiary

The transaction which is not at Arm's Length Price 'ALP' is an act of Tax Avoidance . In this case, an Indian subsidiary, while selling its products, charging less amount from its foreign parent company and shifting profits to outside India in order to avoid tax liability in India and therefore is an act of Tax Avoidance as the transaction is not at arm's length price.