Under section 40a2(b)
This query is : Resolved
Bhumika bharwani
(Querist)
17 January 2015
How tO justify inter co. purchases with regard tO fair market value
Guest
Guest
(Expert)
17 January 2015
you can compare with the similar goods traded in the market after adjusting some functional differences..
Mohit Singla
(Expert)
17 January 2015
To justify the inter company purchases rate,
you can refer the market quotations of that product from another seller.
If the prices are almost resembling then their would be no issue.
If prices are highly fluctuated, then make a "statement of Justification" for the same.
Reasons can be:
1. Product without/low profit margin.
2. Any sort of subsidy or duty drawback.
3. Product without charging overhead cost etc.
you can refer the market quotations of that product from another seller.
If the prices are almost resembling then their would be no issue.
If prices are highly fluctuated, then make a "statement of Justification" for the same.
Reasons can be:
1. Product without/low profit margin.
2. Any sort of subsidy or duty drawback.
3. Product without charging overhead cost etc.
Rupesh Jain
(Expert)
17 January 2015
you have buy same goods from others.
the you see that bill.
otherwise some item or commodity magazine also published by the trade union then you take the ref of that magazines.
or you produce the PI from any vendor for that items.
the you see that bill.
otherwise some item or commodity magazine also published by the trade union then you take the ref of that magazines.
or you produce the PI from any vendor for that items.
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