Computation of alp - transfer pricing
This query is : Resolved
Shanth Raj B
(Querist)
01 December 2014
Sir,
There are 3 sister concerns viz., 'A' Ltd., 'B'Ltd., and 'C' Ltd.,
A ltd., purchases the goods from B Ltd and sell the same to C ltd without value addition.
Can we apply Resale Price Method to this transaction to arrive at ALP? If yes, what about profit margin?
Pls explain...
There are 3 sister concerns viz., 'A' Ltd., 'B'Ltd., and 'C' Ltd.,
A ltd., purchases the goods from B Ltd and sell the same to C ltd without value addition.
Can we apply Resale Price Method to this transaction to arrive at ALP? If yes, what about profit margin?
Pls explain...
Amol S Joglekar
(Expert)
01 December 2014
Yes, you can apply esale value method.
You need to take a sample of similar products/activities/things being resold at what %.
You need to take a sample of similar products/activities/things being resold at what %.
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