The issue of marketing intangibles in the Indian transfer pricing setting has been one of the most conspicuous. The Indian Tax Administration (ITA) has historically alleged that advertising, marketing and promotional (AMP) expenses incurred by Indian subsidiaries constitute a brand-building exercise, generating “marketing intangibles” for the overseas IP owner. The taxpayers have contended that the approach adopted by the ITA is legally unfounded, particularly on the use of the “Bright Line Test” (BLT) to determine the quantum of compensable returns to Indian subsidiaries. This article traces the evolution of disputes on marketing intangibles and discusses the need to find possible solutions within the framework of the arm’s-length principle. While the issue in India is pending adjudication before the Supreme Court, the recent OECD Public Consultation Draft (CD) on the digitalization of the economy could provide a way forward to dispute resolution in India. Conversely, the Indian experience could also provide important insights for the OECD to consider in the process of finalising the CD.