Detailed Explanation
How it works
It is determined using the most appropriate of the prescribed methods (CUP, RPM, CPM, PSM, TNMM or the other method), supported by a benchmarking study.
Frequently asked questions
What is the arm's length price?
The price unrelated parties would agree in a comparable transaction, used to test related-party pricing.
How is ALP determined?
Using the most appropriate of the prescribed methods, with a benchmarking study and FAR analysis.
This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.