Value in case of branch transfer

This query is : Open

Gurwinder Singh (Querist)
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06 July 2018 dear expert

we want to transfer finished goods from one branch to another which is interstate branch

i want to know at which price we can transfer goods.

is there any rule to determine the price charged for transfer or we can transfer at any price.

kindly help

Rakesh Mishra

Rakesh Mishra (Expert)
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06 July 2018 Practically you can transfer at any price. Because your Profit & Loss account will be consolidated. If not than, the authority to whom you are submitting branch's P&L, can ask to comply Arms Length Pricing.

Gurwinder Singh

Gurwinder Singh (Querist)
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06 July 2018 yes sir we consolidate the books of accounts of both

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