Transfer pricing alp computation
This query is : Resolved
10 January 2013
Hi
I require Guidance in calculation ALP for transfer of fixed Asset to a sister concern.
How to compute arms lenght price when Asset is say 2 years old and depreciation is being claimed by the transferring company?
Which method to use?
1. I Thought of Cost Plus method where cost will be reduced by the depreciation already claimed and say add 5% margin on transfer and maintain such 5% margin uniformly for all similar sale in future to related and not related party.
Please Advise if i can take the above said Stand. The Matter is urgent so quick reply is appreciated.
I require Guidance in calculation ALP for transfer of fixed Asset to a sister concern.
How to compute arms lenght price when Asset is say 2 years old and depreciation is being claimed by the transferring company?
Which method to use?
1. I Thought of Cost Plus method where cost will be reduced by the depreciation already claimed and say add 5% margin on transfer and maintain such 5% margin uniformly for all similar sale in future to related and not related party.
Please Advise if i can take the above said Stand. The Matter is urgent so quick reply is appreciated.
10 January 2013
This is Within country transaction and not an international transaction.
02 August 2025
https://docs.google.com/document/d/15-BnjPyQeJctlqKOcXmtEjwbhRyIeDGUU0GwMradlLE/edit?usp=sharing
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