Multiple Methods Of Transfer Pricing And Guidelines Of (oecd)
Transfer pricing is a reality that has become difficult to avoid in global business. It has attracted the scrutiny of tax authorities worldwide and continues to draw attention of more and more taxing bodies. Various methods determine the proper applicability of the “arm’s length” price principle, as approved through the OECD. Comparable Uncontrolled Price Method, Resale Price Method, Cost-Plus Method and Profit Split Method are some of the prominent methods which provide a strategic and appropriate application of transfer pricing principles in ecommerce transactions held between Multi National Companies.
The following questions have been addressed in this article:What is the Comparable Uncontrolled Price Method?
What is the Resale Price Method?
What are the areas of application of Profit Split Method?