Transfer pricing

Pooja (Articleship Trainee) (40 Points)

19 August 2013  

Hi,

I need inputs on a transfer pricing agreement between a subsidiary and a parent company wherein the subsidiary is buying Plant and machinery from the parent company and I am supposed to determine the Arms Length Price for the same for the subsidiary Company.

Please suggest as to which method would be most suitable in the above case? And how to proceed further with the appropriate method to determine the Arms Length Price?