05 February 2011
As per maharashtra VAT Act there is a reduction in set-off of 2% on purchases made for Branch Transfer. In one of our client case branch transfer is made on Invoice price (i.e. cost of Production+ profit)there is no possibility of finding corresponding purchases of goods. please advise us in respect of reduction in set-off in this case.
05 February 2011
If you are charging 10% profit on cost of goods, and no similar items are available in market, the price charged for branch transfer may be assumed as arm length price.
CAclubindia
