Direct Tax Laws & International TaxationQuestion 5834 of 2
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In International Taxation, under Section 92C, which of the following is NOT one of the specified methods for determination of Arm's Length Price (ALP)?

Options

AComparable Uncontrolled Price (CUP) method.
BResale Price Method (RPM).
CProfit Split Method (PSM).
DCapital Asset Pricing Model (CAPM).
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Correct Answer

✅ Option D — Capital Asset Pricing Model (CAPM).

All Options:

  • AComparable Uncontrolled Price (CUP) method.
  • BResale Price Method (RPM).
  • CProfit Split Method (PSM).
  • DCapital Asset Pricing Model (CAPM). ✓

Detailed Solution & Explanation

Correct Answer: Option **D** Explanation: Section 92C(1) prescribes five specific methods plus 'any other method' as may be prescribed: 1. Comparable Uncontrolled Price (CUP) method 2. Resale Price Method (RPM) 3. Cost Plus Method (CPM) 4. Profit Split Method (PSM) 5. Transactional Net Margin Method (TNMM) CAPM is an economic/financial valuation model, not a statutory transfer pricing method.

More Questions from Direct Tax Laws & International Taxation

Under Section 115JB (Minimum Alternate Tax - MAT), what is the current base rate of MAT on Book Profits for domestic companies (excluding surcharge and cess)?

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