Which methods are used to determine the pricing?
There are methods that are currently used: 1. Comparable Uncontrolled Price Method, where the prices are compared to comparable transactions between unrelated entities. 2. The Resale Price Method, whereby the gross profit margin is determined according to what would be appropriate if it were an independent business. 3. The Cost-plus Method. Whereby the price is based on a mark-up comparable with an independent seller.