BRANCH TRANSFER
This query is : Resolved
01 October 2020
Dear all
In my client company stock transfer will be happen. For that IGST They will pay
and take it is input. Transfer price is 40% less than MRP. They normally send the goods in transport
in transfer invoice only cost of material will take place
As per transaction value
Cost of materials
+ transportation cost
will be the transaction value
So in my client company stock transfer invoice contains only Material cost
My doubt is whether transaction is to be included in the transfer value.
In my client company stock transfer will be happen. For that IGST They will pay
and take it is input. Transfer price is 40% less than MRP. They normally send the goods in transport
in transfer invoice only cost of material will take place
As per transaction value
Cost of materials
+ transportation cost
will be the transaction value
So in my client company stock transfer invoice contains only Material cost
My doubt is whether transaction is to be included in the transfer value.
01 October 2020
include transportation cost in transfer value.
02 October 2020
As per proviso to rule 28 of CGST Rules, the value declared on the invoice shall be deemed to be open market value if the recipient unit is eligible to avail Full ITC.So in your case the value declared on the invoice is legally valid.
"Provided further that where the recipient is eligible for full input tax credit, the
value declared in the invoice shall be deemed to be the open market value of the goods or
services."
"Provided further that where the recipient is eligible for full input tax credit, the
value declared in the invoice shall be deemed to be the open market value of the goods or
services."
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