Most Appropriate Method (MAM) selection considers:
ANature of transaction, availability of comparables, FAR analysis
BIndustry preference (per relevant Section) (per relevant Section)
CAO's choice
DStatutory order
Answer & Solution
Correct answer: A. Nature of transaction, availability of comparables, FAR analysis
1. Rule 10B(2) and OECD Guidelines require MAM selection.
2. Factors: nature/class of transaction, AE class, FAR analysis, data reliability, comparability adjustments.
3. No hierarchy; MAM is fact-specific. CUP preferred when reliable comparables exist.
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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