Hi
If for example Company A was providing services to customers and Company B was providing other services, if Company A wanted to bill out for both A &B services would this create a transfer pricing issue?
The companies are both part of the same overall group.
My theory was:
* All the costs were incurred in Company B apart from admin raising the invoice for Company B's services.
* Company A could bill out to the client for A & B's services so all on one invoice
* Company B could invoice Company A for the costs inc the margin, the margin would sit in Company B.
* The net sale/cost in Company A would offset so I can't see any transfer pricing issue as technically apart from the billing out the profits sit within the correct companies.
Appreciate any advice, more than likely it is more technical than this or I am making more of an issue of it than I need to.
Thanks
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