Question

give examples for comparable uncontrolled price (cup) method ??
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Answer 1

Answer:

The CUP method compares the price charged for property or services transferred in a controlled transaction to the price charged for property or services transferred in a comparable uncontrolled transaction in comparable circumstances.

CUP Method Example. X looks at the price for which it sells 1 “Buster 3.0” to a third party distributor (Internal CUP). X looks at the price for which Z sells 1 “Dragon Buster” to a third party distributor (External CUP).

Answer 2

Answer:

Comparable Uncontrolled Price (CUP) Method

Under CUP method, a price which is charged in an uncontrolled transaction between the comparable firms is recognized and evaluated with a verified entity price for determining the Arm's Length Price. A Ltd. purchases 10,000 MT metal from B Ltd. its subsidiary @ INR 30,000 /MT.

Explanation:

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