Whether it is a other source income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2014 when one partnership firm transfer gold held as a stock to other partnership firm at a purchase price which is less than fair market value . whether it is other source income for other partnership firm. The partnership firm who sold is in regular trading in textile but has purchase gold for first time for trading and sold to related other partnership firm.. no other transaction regarding purchase and sales of gold has taken place

Amol S Joglekar

Amol S Joglekar (Expert)
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23 November 2014 When it is held as stock in trade, there is no need to show it separately under income from other sources.
So far as sale price is concerned, check if DTP (Domestic Transfer Price) limits are applicable to your firm. If yes...then market value may be replaced else on a stand alone basis, it is for the firm to decide at what price it should sell its stock.