Sale of goods by a partnership firm to a partner

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CA Ksheerabthi Nathan (Querist)
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18 August 2013 whether sale of trading goods by a partnership firm to partner amounts to sale or not as per income tax act?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 August 2013 It can be treated as sales.

CA Ksheerabthi Nathan

CA Ksheerabthi Nathan (Querist)
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19 August 2013 please state whether there is any specific provision governing it or is there any supporting case law for it.why should not be it treated as drawings?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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19 August 2013 It is specified sales and if the saleeing price is below the cost then the provisions of section 40A(2) will apply

V K Bajaj

V K Bajaj (Expert)
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19 August 2013 @ Mr Bafna

Not 'can be treated' but 'must be treated'

@ Mr.Ksheerabthinathan

It cannot be termed as WITHDRAWAL because VAT people are there. Wherever VAT is there it is SALE. However, in narration it can be declared withdrawal by goods.

@ Mr SS Agarwal

Thanks for your professional answer.

CA Ksheerabthi Nathan

CA Ksheerabthi Nathan (Querist)
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21 August 2013 thanks to everyone for the answers

CA PARTH SHAH

CA PARTH SHAH (Expert)
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10 May 2015 It can be treated as Withdrwals. However for firm must pay VAT on such transactions as rightly said by Mr Bajaj.

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