A USA based company is planning to set up a software development unit in India. Software developed at the Indian unit will be bought back by the US parent at a transfer price of US $10 millions. The unit will remain in existence in India for one year; the software is expected to get developed within this time frame. The US based company will be subject to corporate tax of 30 per cent and a withholding tax of 10 per cent in India and will be eligible for tax credit in India. The software developed will be sold in the US market and many companies are ready to acquire the same. Other estimates are as follows: Rent for fully furnished unit with necessary hardware in India 18,75,000 Manpower cost (80 software professional will be working for 10 hours 500 per man each day) Administrative and other costs hour 15,00,000 Advise the US Company the minimum amount it should charge from the prospective buyer. The rupee-dollar rate is 60/$. Note: Assume 365 days a year