01 October 2020
Dear all In my client company stock transfer will be happen. For that IGST They will pay and take it is input. Transfer price is 40% less than MRP. They normally send the goods in transport in transfer invoice only cost of material will take place As per transaction value Cost of materials + transportation cost will be the transaction value So in my client company stock transfer invoice contains only Material cost
My doubt is whether transaction is to be included in the transfer value.
02 October 2020
As per proviso to rule 28 of CGST Rules, the value declared on the invoice shall be deemed to be open market value if the recipient unit is eligible to avail Full ITC.So in your case the value declared on the invoice is legally valid. "Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services."
CAclubindia
