VAluation rule applicablity?????

qus. 1.  which valuation rule applicable, in case of transaction happens b/w holding co. and subs co..??

qus 2. holding co. selling good to subs.. thn subs co. selling this good to a related wholesale dealer co. ??in this case which rule would b applicable..

Replies (4)

If goods are sold solely through related person (except in case of inter connected undertaking, unless there is holding subsidiary relationship), valuation will be ‘normal transaction value’ at which the related buyer sales to unrelated buye

its not my answer pankaj.....

 

RULE 10. When the assessee so arranges that the excisable goods are not sold by him except to or through an inter-connected undertaking, the value of goods shall be determined in the following manner, namely :-

(a)    If the undertakings are so connected that they are also related in terms of sub-clause (ii) or (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act or the buyer is a holding company or subsidiary company of the assessee, then the value shall be determined in the manner prescribed in rule 9.

Explanation. - In this clause “holding company” and “subsidiary company” shall have the same meanings as in the Companies Act, 1956 (1 of 1956).

(b)    in any other case, the value shall be determined as if they are not related persons for the purpose of sub-section (1) of section 4.

in first case rule 1o is applicable.

in second case rule 11 shall be applicable

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