Applicability of svb licence

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2014 Hi Team,
I wanted to know whether SVB Licence is required under following type of transactions.

Parent Company in US purchases items and supplies the same to its subsidiary at the same cost. But while invoicing it adds 1% of the value towards handling fees as a separate line item in the invoice. While despatching the material, it also sends the copy of its purchase invoice to demonstrate that it is an arms length transaction.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

01 January 2015 must read:

https://bangalorecustoms.gov.in/PN_86_2010.htm

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2015 Thanks Mr. Ramesh for sharing the link. I have gone through the link multiple time. There is section in the notification which reads as below

"Provided that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf:"

My question was since the sale is made at cost price, with separate line item towards handling fees, does SVP applies to us?

Thanks/Girish

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

05 January 2015 Traders who are importing the goods and selling the same in the same condition as they are imported shall furnish the invoice value, landed price, and their selling price in the Indian market. The difference between the selling price and landed cost shall be properly explained.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now