Related person transactions

This query is : Open

SIJU VARGHESE (Querist)
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19 October 2017 Sir,

Kindly reply to the below query,

Whether a partnership firm liable to pay tax on materials issued to a partner for his personal use?

Thank you

RAJA P M

RAJA P M (Expert)
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19 October 2017 Yes... Exactly...

But,
Explain yourself what are the transactions...?

SIJU VARGHESE

SIJU VARGHESE (Querist)
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20 October 2017 Sir, the Firm has imported some tiles for the personal requirement of one of the partners as the Firm has Import Licence. The Firm is not in the business of trading Tiles. But doing interior works with wood materials and also trading furniture.