Transfer Pricing

Key findings :

The Transfer Pricing as a concept originated for internal profit distribution and reallocation of revenue attributes among the various departments of an organization. Taking SBI as a reference example, it can be leveraged to gain lateral advantage to achieve effective performance growth in targeted business areas.

The key areas focus areas of the report are :

• Can Transfer Pricing be used a management tool, leveraging beyond its core objective?
• Can TPM be used as a motivation and performance enhancement tool through incentive driven targets?
• Is it possible to rationally align these attributes to management strategies to maximize organizational performance parameters ?
• Does TPM have a direct bearing on the profitability of sub-units?
• Does TPM have a direct bearing on the profitability of the organization as a whole? If yes, can TPM be used to help improve bottom line?
• Is it possible that an organization can "window dress" profits through manipulation in TPM?
• Do frequent changes in transfer pricing guidelines erode the base principles o TPM?

The report has an exciting return on its findings and a detailed SWOT analysis with SBI as a reference case study, on the unlimited possibilities that TPM can be leveraged into.