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what is transfer pricing

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(Querist)
31 August 2017 what is the meaning of transfer princing ?
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sivaram

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sivaram (Expert)
01 September 2017 The pricing or the transaction between knowledgeable buyers and sellers should take place at arms length price
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Anand

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Anand (Expert)
01 September 2017 Transfer Pricing refers to the price at which goods or services or assets or liabilities are considered between two enterprises who are treated as being Associated Enterprises.
The practice came under scrutiny because the price would be managed in such a way so as to ensure that the profits of the enterprise was transferred to a jurisdiction where the tax rate is lower. Broadly Transfer Pricing means use of valuating transactions between related parties such that the income is transferred to a jurisdiction other than its source.
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