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Transfer Pricing: Transactional Net Margin Method
TP
CA. Kavit Vijay

Transfer Pricing: Transactional Net Margin Method

To simplify the process, various methods are provided under Income Tax Act for computation of Arm’s Length Price (“ALP”) and the Transactional Net Margin Method (“TNMM”) is one of such methods. This article will offer you a brief insight into what the Transactional Net Margin Method is, what is its applicability, what are the Indian regulations for it when to use it, and what are its strengths and weaknesses. 

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Transfer Pricing: Cost Plus Method
TP
CA. Kavit Vijay

Transfer Pricing: Cost Plus Method

Under the Cost Plus Method, Arm Length Price is determined by adding profit markup to the direct and indirect cost of production incurred with respect to goods transferred or service provided. Manner of computation of ALP under Cost Plus Method is given under Rule 10B(c) of Income Tax Rules.

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Related Party Transaction
Transfer Pricing
CA. Kavit Vijay

Related Party Transaction | Interplay between GST and Transfer Pricing

According to tax experts’ assessments of the GST implementation, the old issue of transfer pricing has the potential to shake the system in the future. The goods and services tax (GST) was implemented with the goal of creating “one nation, one tax,” and it is the country’s largest indirect tax reform in history. 

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Transfer Pricing: Primary & Secondary Adjustment
TP valuation Methods
CA. Kavit Vijay

Transfer Pricing: Primary & Secondary Adjustment

Transfer Pricing is a popular term in every company for the purpose of complying with the Income Tax Act of India. In this article the two types of Transfer Pricing adjustments, primary adjustment and Secondary adjustment, will be discussed briefly.

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Profit Split Method in India
TP valuation Methods
CA. Kavit Vijay

Transfer Pricing: Profit Split Method

The Profit Split Method is one of the key methods used in transfer pricing which is typically used when both or all enterprises involved in the transaction have made a significant contribution towards the supply of either goods or provision of services.This popular method begins with identifying the profits sharing ratio between the associated enterprises relative to the contribution that each enterprise has made to the transaction.

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Transfer Pricing Resale Price Method
TP valuation Methods
CA. Kavit Vijay

Transfer Pricing: Resale Price Method

Transfer pricing can be defined as the value which is attached to the goods or services transferred between related parties. While using this method, one takes the prices at which the associated enterprise sells its product to the third party. This price is referred to as the resale price.

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Arm's Length Principle
TP
CA. Kavit Vijay

Transfer Pricing: Introduction of Arm’s Length Principle

Organisation for Economic Co-operation and Development came up with an international guideline-based on arm’s length principle to curb this issue. Arm’s length price is the price for the same or similar transaction which took place between independent parties in uncontrolled situations. Section 92C of Income Tax Act, 1961 specifies 5 methods of computation of Arm’s Length Price. You may read about such articles here. As per the Arm’s Length Principle, controlled transaction entities that are in correlation through management, capital, or control should agree to the same terms and conditions which they would have agreed in case of dealing with

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TRANSFER PRICING: INTERNATIONAL TRANSACTION
TP
CA. Kavit Vijay

Transfer Pricing: International Transaction

When multinationals proceed through cross border transactions, tax authorities on both sides would like to make sure that they get their fair share of tax. Transfer Pricing regulations are only to achieve this goal. But does transfer pricing means pricing of goods? Well, here you need to have a clear understanding of Transfer Pricing. Hence, go through the article as we have mentioned everything you should know about Transfer Pricing and International taxation. 1. What is Transfer Pricing? At the first place, let’s talk about what is transfer pricing, Transfer pricing means price charges for goods or services provided. However,

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Benefits of transfer pricing
TP
CA. Kavit Vijay

Transfer Pricing: Meaning | Risk and Benefits of Transfer Pricing

With globalization in effect, there is a significant rise in the number of multinational companies. It’s a fact that around 60% of world trade proceeds within multinational enterprises. Hence, transfer pricing has become an interest not only for tax administrators but also for economists, NGOs, business persons, and politicians who are waking up to the call.  Here in this article, we are going to learn about all the risk factors and benefits of Transfer Pricing. It’s much of people’s interest knowing who is paying tax and who is not when business transactions between different arms of multinationals take place.  It’s

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