Thursday, 6 November 2014

What are the different Methods to calculate the arm’s length price?

What are the different Methods to calculate the arm’s length price?



The various Methods to calculate the arm’s length price with respect to an international transaction are as under :

Transactional net margin method (TNMM)
Resale price method (RPM )
Comparable uncontrolled price method (CUP)
Cost plus method (CPM )
Profit Split Method (PSM) ( PSM )


Other Method as prescribed by the Board (CBDT). So far, no method is prescribed by the Board.

Post a comment

 
Copyright © 2014 Taxation4u | Disclimer