Videsh ltd, a US company has a subsidary Hind Ltd in India. Videsh Ltd sells mobile phones to Hind Ltd for resale in Inida. Videsh Ltd also sells mobile phones to Bharat Ltd, another mobile phone seller. It sold 48000 mobile phones to Hind Ltd for Rs 12000 per uni. The price fixed for bharat ltd is Rs 11000 per unit.
The warrenty in case of sales of mobile phones by Hind Ltd is handled by itself, whereas the sale of mobile phones by Bharat Ltd, Videsh Ltd is responsible for warrenty for 6 months. Both Videsh ltd and Hind ltd extended warrenty at a standard rate of Rs 500 per annujm
on the above fcts what is the transfer price ????
CAclubindia
