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TMI BlogValuation in case of branch transfer from a Tax Holiday plantX X X X Extracts X X X X X X X X Extracts X X X X ..... We have a manufacturing unit at Haridwar which is under tax holiday exemption under income tax (hence domestic transfer pricing rules also applicable). We are transferring finished goods from the plant to depot(branches)in other state from where they are sold to independent customer. We are making invoice for said branch transfer on cost+5 % markup(reqd under transfer pricing) and paying IGST on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said amount. The branches are fully entitled to take input credit.My query is - IN some cases the price so arrived (cost+5%) at is more than the resale price on which the material is sold by recipient branch to customer and in some cases the price so arrived is less than the price on which it is resold from branch. Is this valuation method OK from GST point of view .If not than what should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the correct method. Request experts to provide their valuable opinion on the same. - Reply By Rachit Agarwal - The Reply = Proviso to Rule 28 of CGST Rules, 2017 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. Considering the said provio, your va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luation is in compliance to GST provisions - Valuation in case of branch transfer from a Tax Holiday plant - Query Started By: - sunil bhageria Dated:- 2-4-2020 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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