Arm's Length Price (ALP) is the price at which transactions between related parties, such as parent and subsidiary companies, should occur as if they were unrelated parties. This ensures fair taxation and prevents profit shifting.
Summary: ALP is calculated using methods like CUP, RPM, CPM, PSM, and TNMM, ensuring fair pricing between related parties to prevent tax avoidance.
Answer By Law4u TeamDiscover clear and detailed answers to common questions about General. Learn about procedures and more in straightforward language.