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What are the different methods to calculate arm’s length price with respect in business?

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Thasni Thasni
Answered on February 13,2020

The various methods to calculate the arm’s length price with respect to an international/specified transaction are as under:

  • Comparable uncontrolled price method (CUP)
  • Resale price method (RPM)
  • Cost plus method (CPM)
  • Profit Split Method (PSM)
  • Transactional net margin method (TNMM)
  • Other Method as prescribed by the Board (CBDT)
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