Economics · Transfer Pricing
Techno India (Pvt.) Ltd., an Indian company, purchased goods from Jems Ltd., U.K., an associated enterprise, at ₹3,000 per piece. The following arm's length prices have been determined by the most appropriate method for different situations: Situation 1: ₹2,890 Situation 2: ₹3,050 Situation 3: ₹2,700 Situation 4: ₹2,940 Assuming the international transaction is not in respect of wholesale trading, what will be the arm's length price as per the Indian Income Tax provisions?
- 1₹3,000
- 2₹2,895✓
- 3₹3,050
- 4₹2,940
Correct answer
₹2,895
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