Transfer Pricing - Very Urgent & Important
This query is : Resolved
09 November 2007
Transfer Price Clarification
X Ltd, a Manufacturing company, sells products to its Associates, Y Ltd(40% holding) , singapore. It also sells the same products to Thailand company called Z ltd, which is not an associates or subsidiary.
The company sells the same products in domestic market also. If it compare with domestic market, the export price is very less. More over the price charged to the singapore and Thailand also not similar. The mostof the product price is charged based on the quataion and the market price prevailing outside the country to which it is exported. price also varying from time to time.
My question is how to compute transfer price in the above situation.
Which method is suitable.
The cost of the above product is available.
But the comparable uncontrolled price is very difficutty to find out and
Whether the selling price adopted for Thailand can be taken for comparable purpose.
With regards
Mani
X Ltd, a Manufacturing company, sells products to its Associates, Y Ltd(40% holding) , singapore. It also sells the same products to Thailand company called Z ltd, which is not an associates or subsidiary.
The company sells the same products in domestic market also. If it compare with domestic market, the export price is very less. More over the price charged to the singapore and Thailand also not similar. The mostof the product price is charged based on the quataion and the market price prevailing outside the country to which it is exported. price also varying from time to time.
My question is how to compute transfer price in the above situation.
Which method is suitable.
The cost of the above product is available.
But the comparable uncontrolled price is very difficutty to find out and
Whether the selling price adopted for Thailand can be taken for comparable purpose.
With regards
Mani
09 November 2007
DEAR mani
INthe given case it is varry clear to apply the you can consider the selling price . one of the your independent / uncontroled enterprises that you are all ready selling to singpore . so can easly take CUP METHOD , THAT IS COMPARIABLE UNCONTROLLED PRICE METHOD
Here you can compare the selling price of an uncontrolled asoociates
Yours
muttu
INthe given case it is varry clear to apply the you can consider the selling price . one of the your independent / uncontroled enterprises that you are all ready selling to singpore . so can easly take CUP METHOD , THAT IS COMPARIABLE UNCONTROLLED PRICE METHOD
Here you can compare the selling price of an uncontrolled asoociates
Yours
muttu
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
