Western Regional Chapter of International Fiscal Association –Indian Branch Transfer Pricing Problems‚ Strategies and Documentation Recent International Case Law on Transfer Pricing by Nishith Desai The Taj Mahal Hotel‚ Mumbai January 21st & 22nd 2002 Nishith Desai Associates 2 TRANSFER PRICING Content I. II. Introduction History III. Select International cases US Cases 1. 2. 3. Compaq Computer Corporation V. Commissioner DHL Corporation and Subsidiaries V. Commissioner Texaco
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round-trip flights of at least 7 days‚ purchased 30 days in advance. Previously‚ air fare pricing was a simple structure of first class/coach and peak/off-peak categories. Robert Crandall‚ of American Airlines‚ introduced a new air fare system known as yield management. The simple price structure was unbundled to unleash multiple levels of passenger fares. The consumer groups were all bundled under one pricing‚ even though different consumers had different WTPs. By unbundling these groups and charging
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Transfer Pricing in India 1. Introduction Increasing participation of multi-national groups in economic activities in India has given rise to new and complex issues emerging from transactions entered into between two or more enterprises belonging to the same group. Hence‚ it was pertinent to introduce a uniform and internationally accepted mechanism of determining reasonable‚ fair and equitable profits and tax in India in the case of such multinational enterprises. Accordingly‚ the Finance
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FMCG firms in a fix over pricing strategy | | | | Some relief is on the way for fast-moving consumer goods( FMCG) companies‚ with prices of crude oil‚ wheat‚ milk and palm oil either on the decline or stabilising. Even as flexible packaging prices — which had become a new headache for FMCG companies — may come down on the back of stable crude oil prices‚ the verdict on production costs is still unclear. While palm oil prices have crashed by almost 40 per cent‚ wheat and milk rates are
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Ticket Pricing Strategy for the new Wembley Stadium 1 Introduction OBJECTIVE To maximise profits from ticket sales at Wembley Stadium KEY ASSUMPTIONS 1. Wembley has a monopoly on certain types of match 2. Wembley is run by profit maximising managers selling tickets to utility maximising buyers STRATEGY Set prices for seats as close to the willingness to pay as possible using price discrimination KEY CHOICES What type of seating to sell and at what price? 2 Scope This strategy is limited
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Huang Ge MGT401 Prof. Patton‚ Joseph 2/3/2015 Case 2 1. Describe Dropbox’s “Freemium Pricing strategy” to get users and revenue. What was this strategy? What did the company hope to accomplish with this strategy? Dropbox is a company providing remote-storage over the internet‚ cloud storage service as well. The “Freemium Pricing Strategy” is a popular pricing strategy which company provide client a basic service without paying a dime and premium services were paid. Dropbox offers 2GB cloud storage
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GENERAL PRICING APPROACHES There are four general pricing approaches: Mark-up pricing - The practice of adding a constant percentage to the cost price of an item to arrive at its selling price. Mark-up pricing is a pricing strategy in which the cost of the product is first calculated then a proportion of its markup was added. It is used primarily because it is easy to calculate and requires little information. An example of this are the retail stores. Value-based pricing - also value optimized
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Chapter 07 - Pricing With Market Power CHAPTER 7 PRICING WITH MARKET POWER CHAPTER SUMMARY This chapter extends the analysis in previous chapters to examine pricing decisions in greater detail. It starts by reviewing the benchmark case of charging one price to all customers. It then examines more sophisticated pricing policies that can be used to increase profits. CHAPTER OUTLINE PRICING OBJECTIVE BENCHMARK CASE: SINGLE PRICE PER UNIT Profit Maximization Relevant Costs Price Sensitivity
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Pricing Introduction Peter Drucker‚ who is widely regarded as the greatest management thinkers of our time once said: “Because the purpose of business is to create a customer‚ the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing‚ unique function of the business.” Looking at the problems faced by most businesses today‚ it seems obvious that Drucker was right when he
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Airline Industry: Pricing Structure and Strategies ABSTRACT The profitability of an airline industry depends on filling seats‚ and on the company’s ability successfully to anticipate the cost and price structures of their competitors. However‚ many airline carriers have a hard time accomplishing this because the average airline passenger just needs to travel from one destination to another in the most convenient and shortest amount of time at a reasonable price. Therefore‚ customers in this
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