As per sec 4(1)(a), transaction value is considered as A.V., on fulfillment of some conditions . one of such conditions is GOODS MUST BE SOLD ,FOR DELIVERY AT THE TIME AND PLACE OF REMOVAL. AS PER SEC 2(h) sale means transfer of possession of goods, in the ordinary course of business for cash.......... Thus transfer of mere possession is sufficient to fulfill this condition . what is the significance of the word "FOR DELIVERY" used here? (in my opinion word transfer of possession it self denotes for delivery).
Hi, you r right As per sec. 4(1)(a) TV is considerd as AV only if some conditions are fulfilled.and one of them is "Price should be for delivery at the place of removal."
For Delivery means removing the goods. well in this condition just consider on place of removal not "for delivery".It is important that from where you are removed the goods
For Eg.If goods are sold at the factory gate then that price is accepted as AV under this sec. otherwise if the goods sold at any other place then the value shall be computer u/s 4(1)(b) read with Rule 5
and these conditions are just determining the Price and it should be "at the time of removal" and "at the place of removal". Just remember it.
CAclubindia
