Easy Office
LCI Learning

Supply to related party

This query is : Resolved 

03 March 2020 XYZ is manufacturing and supplying moulds exclusively to related party. What should be the basis for valuation for this transaction?

03 March 2020 The Value of supply shall be determined as under:

1. The Open Market Value (OMV) of the supply. OMV will be the amount which is fairly available in open market.

2. If the open market value is not available, it will be the value of supply of goods or services of like, kind and quantity. Here, the taxable person can use as reference similar goods or services or both for determining the value of supply.

3. If the value is not determinable in the above two cases it shall be determined by either by the Cost Method or Residual Method.




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

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries