A transfer price arises for accounting and taxation purposes when related parties, such as divisions within a company or a company and its subsidiary, report their own profits. When these related parties are required to transact with each other, a transfer price is used to determine costs. Transfer prices generally do not differ much from the market price.
Transfer price is a price that represents the value of goods or services between independently operating units of an organization whereas “transfer pricing” refers to prices of transactions between associated enterprises that may take place under conditions differing from those taking place between independent enterprises.
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- Applicability
- Helping to use best method for Computing Arm’s Length Price
- Documents required to be maintained
- Safe Harbour rules and its applicability
- Audit Under Transfer pricing
- Appeals
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