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Transfer pricing

vikram (none) (35 Points)

26 October 2012

Dear PPL,

Please help me in Find Tranfer Pricing for a BPO Entity. where do i can get details regarding arm lenght price?

Transaction details: Indian BPO company providing services to US company which are associated to each other under Sec92 of Income tax act.

I want to know that what Indian companies charging to US company on BPO services. Kindly provide details or ideas.

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5 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 27 October 2012

you can check first what method suitable to you for preparing a transfer price report , also compare the price on which you same service provides to other industries with associated concern

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vikram (none) (35 Points)
Replied 27 October 2012

I have selected Cost Plus Method. Further transaction with unassociated enterprize is not available with me, Indian client also did not have any documentation. I want to know from where i can tale uncontrolled price..

Raghavendra B. kuber (Accounts Executive) (88 Points)
Replied 27 October 2012

yes you can tale uncontrolled price

vikram (none) (35 Points)
Replied 27 October 2012

From where, please provide me a link.

Yogesh Kumar (Job) (180 Points)
Replied 28 October 2012

Sory to interupt you both, but our Indian accounts are presented in such a manner that it is not practically feasable to apply methods other than TNMM. If you are taking cost plus then you will not be able to find the cost of you comparable and same will happen in other methods also.

With respect to your comparable selection, you can also search the entities providing similar type of services on google as well then you can finalise the comparables applying you filters. But make sure that you should fianalise only those comparable which are having low margins as compare to your entity.