21 February 2015
Dear Expert, Clearance of Exempted product ( Nil by Tariff )are made to the subsidiary ( marketing) company by the holding company say for Rs 100/kg. Holding ( mfg) company has choosed the option as per 6 of CCR 2004 for reversal of 6% on the value of assesable value exempted goods to the subsidiary company.since seprate account of input, capital goods and inpute services are not maintained. Subsidiary company is marketing company added their margin the sold to their customer @ Rs 125/kg Whether 6% amount to be paid on value of holding company or subsidary company ( Rs 100/kg.or Rs 125/kg. Thanks in advance
CAclubindia
