Sale
This query is : Resolved
Sandeep Kumar
(Querist)
25 February 2014
our company is a trading co.
i want to know that can we sale our product below from the purchasing rate if not than why please explain me in this regard.
i want to know that can we sale our product below from the purchasing rate if not than why please explain me in this regard.
CA Parul Saxena
(Expert)
25 February 2014
If you would sell the product below your purchase price then transfer pricing provision of income tax act will apply creating a doubtful fact that certainly you have created some blunder in your transactions.
Sandeep Kumar
(Querist)
25 February 2014
as I told our com. is a trading co. and some product are not selling then we sale these on discount upto 50 % and paid commission to showroom (25%). please suggest in that case.
Ex. if a article purchasing price is Rs. 100/- and the price MRP of this product is Rs. 250/- then according to you that is below pur. pricing or not. please guide me.
Ex. if a article purchasing price is Rs. 100/- and the price MRP of this product is Rs. 250/- then according to you that is below pur. pricing or not. please guide me.
CA Parul Saxena
(Expert)
25 February 2014
If you have stock of the product which is not selling and you have no option to sell it at below the cost then there is no problem but if intentionally you are purchasing more of the same product and selling it below the cost inspite of knowing that this product is not profitable then surely problem will occur
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Sandeep Kumar
(Querist)
25 February 2014
but if we purchase other 10 article excluding those and in these 10 article 4 article not moves well and again we have to sale these 4 article on discounted than what would be condition to us .
CA Parul Saxena
(Expert)
25 February 2014
The whole crucx it must not prove from any action that you are intentionally selling product below the cost if 4 articles not move then next time why you would buy same product which is not profitable to you???
Such type of questions would bring notice to the department
Such type of questions would bring notice to the department
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