Transfer Pricing Methods Transactional Net Margin …

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Date1Transfer PricingMethodsTransactionalNet MarginMethodPresented by:Suchint MajmudarNovember2009PricewaterhouseCoope rsNovember 2009Slide2AgendaTransfer Pricing Methods Introduction Transactional Net Margin Method TNMM Comparable profits Method CPM Date2PricewaterhouseCoopersNovember 2009Slide3Most Appropriate Method OECD advocates the use of Traditionaltransaction Methods (CUP, RPM andCPM) over Transactional profitmethods (PSM and TNMM) [ChapterIII, ] Flexibility granted to taxpayer forselection of Most Appropriate Method No preference for any particularmethod under Indian Transfer pricinglawTransfer Pricing MethodsPricewaterhouseCoopersNovember 2009Slide4Selection of Most Appropriate Method [Rule 10C(2)] Factors determining Most Appropriate Method-nature and class of international transaction-class of associated enterprises and functions performed-availability and reliability of data-degree of comparability-extent and reliabil

Date 4 PricewaterhouseCoopers November 2009 Slide 7 TNMM Transfer Pricing Methods ð§Identify net profit margin realized by the enterprise from an international ...

  Margin, Profits, Transactional, Transactional net margin, Profit margin