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Supply with related parties?
Why does supply with related persons are considered under gst..and supply with unrelated person is not a supply..reason for this??
Replies (5)
Both are considered supply. There is a difference in valuation method. You will have to elaborate your question
In case of no consideration...supply with related party are considered as deemed supply..where supply with unrelated person is not considered as supply..what is the reason behind it?
The reason is simply that in case of related persons both persons can control the value of transactions for mutual gains. In case of unrelated persons logically no one will sell at zero price.
I don't understood the actual reason.how can the value of transaction be controlled..can you explain with some example?
A father can transfer goods to his son without value.
But the same person will not ordinarily sell without consideration
So the relation of a person is influencing the price therefore a loss to the government.
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