TP valuation Methods

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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