There are a variety of ways of ascertaining arm’s length prices. The main broad methods are as follows :
(a) adopting with any necessary modification the uncontrolled market price for the same or similar goods, or adopting or adapting similarly the prices of the same or similar goods to independent third parties – the comparable uncontrolled price method ;
(b) taking the price at which the goods are sold by the connected purchaser (the reseller) to independent customers and subtracting a mark-up to· arrive at the arm’s length price for the sale by the original vendor – the resale price method ;
(c) taking the vendor’s cost and adding an appropriate mark-up to arrive at the arm’s length price for the sale by the original vendor and thus for the purchase by the reseller – the cost plus method ;
(d) any other method which is found to be acceptable.