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Is it sufficient to memorise the names of methods of computation of arm length price in transfer pricing or we need to go into the details (old course)?
Replies (4)
u should go into details sothat u can know the difference among these methods.
knowing practical questions on these method is needed . u sud know y u can't we use other method except given in solution.
I would advise you to practice 1-2 questions from each of the methods. As that will create enough depth of your understanding, also that will help you to handle basic questions asked in examinations.
I have seen examinations where practical questions relating to these topics were asked and those questions were really simple if you know the basics.
Still, comment given by examiners were mostly unsatisfactory.
Being on a safer side, this will be a good thing if you practice 1-2 question from each of the 5 methods of calculating Arms Length Price.
go for questions also bcoz they asked 8 mark question in Nov 17
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