TRANSFER PRICING A REVIEW OF LITERATURE

Abstract

An attempt has been made through this paper to understand the various theoritical models that have been developed to address the transfer pricng complexities and the empirical studies that have been made to understadn the transfer pricing practices in the MNEs over the last six decades. Though the concept of transfer pricng in the modern times can be traced back to early ‘40s, the models have been developed mostly during the ‘70s and ‘80s. The empirical studies started almost from that time as it was practically extremely difficult to adopt any specific model as a transfer pricing problem solving tool. This study has reviewd the literature from both the aspects – theoritical and empirical. The objective of the study is to findout the scope for further study in this field.