Business transactions between family members

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2012 Dear expert,

I explain you my Query with the help of Example,

Husband(Prop.) is the manufacturer and his wife also doing business as a proprietorship.

He regularly send the raw materials for job work to his wife with proper bills and documents and get it back after job is over.

Now he has open new trading business under the name of HUF.

Can he purchase/sales the goods from/to HUF & His wife??

All the transactions are genuine ...and authenticated.

Pls express your opinion.....

CA M Indani

CA M Indani (Expert)
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02 December 2012 IF transactions are genuin n are at reasonable prices..then u can do that ...as all 3 parties are different entities ...but if tax audit is applicable to you, auditor have to disclose the same particulars
,

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2012 Thank you Sir...

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