what is transfer pricing

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Accepted Answer

Transfer pricing is the setting of prices for goods and services sold between related entities within a company.

Transfer pricing ensures that transactions between related entities are conducted at arm's length to prevent tax evasion.
It involves determining the appropriate price for goods or services transferred between different parts of a multinational company.
Transfer pricing can impact a company's tax liabilities and financial statements.
Examples include setting prices for intercompany sales of products or services, licensing intellectual property, or providing management services.
Transfer pricing regulations vary by country and are often subject to scrutiny by tax authorities.

Top HR questions asked in KPMG India Transfer Pricing Associate