TRANSACTION OF SALE OF GOODS OR PROVISION OF SERVICE
EVOLUTION OF TRANSFER PRICING
Transfer pricing, was introduced for setting the right (i.e., arm’s length) price, that should be charged for product sold or services rendered by one segment of an enterprise (Segment A), to another segment (Segment B)/ Branch, of the same enterprise.
INTRODUCTION TO TRANSFER PRICING
With cross border economic growth, companies became Multi National Enterprise (MNE’s) wherein they incorporated separate companies (instead of segment) in various countries.
EVOLUTION OF TRANSFER PRICING
ENTITIES
