Interstate branch transfer valuation

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..... Interstate branch transfer valuation
Query (Issue) Started By: - ravi kiran Dated:- 10-12-2021 Last Reply Date:- 13-12-2021 Goods and Services Tax - GST
Got 5 Replies
GST
Dear Sir Head office in Mumbai Pan No is same for HO & Branches with different GST Nos. Branches in 5 states. Trading company importing inks from Europe in Mumbai and stock transfer to branches.Customs duty is paid .....

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..... , fright charges paid, insurance paid, landed cost is arrived at say ₹ 100. it is final product that us imported. No further processing is involved either Ho or at branches. The selling price in Ho to its customers and in Branches to customers vary. Say ₹ 200 or 250 or 300. At what price, stock transfers should be done. Is it ₹ 100 or with 10% addition ₹ 110. Or 90% of th .....

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..... e sake price say ₹ 180 Which rule is applicable for our organisation rule 28 or 30? Thanks & Regards ravi kiran 8754466964 Reply By KASTURI SETHI: The Reply: Rule 28 (1)(a) of CGST Rules safe. You will resort to Rule 30 only if value cannot be determined under Rule 28. Keeping in view of both provisos of Rule 28, value to be charged should not be less than similar goods. In other words .....

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..... , open market value should be preferred. No question of 110% under Rule 30 when similar goods (kind and quality) are available in the market. Focus on following the valuation not less than market price. Reply By Ganeshan Kalyani: The Reply: Also see the rule which provides that if the recipient is able to take Input Tax Credit then any value is considered as correct. Reply By Shilpi Jain: The .....

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..... Reply: 2nd proviso to rule 28 provides for this. However many assesses are not very comfortable to use this since they fear department intervention. So if credit is eligible to the recipient unit in full, any value can be charged, else use open market value 200 or 250 or 300 - similar transaction's value Reply By KASTURI SETHI: The Reply: I agree with Sh.Ganeshan Kalyani Ji and Madam Shil .....

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..... pi Jain. Reply By Ganeshan Kalyani: The Reply: Thank you Sri Kasturi Sir.
Discussion Forum - Knowledge Sharing .....

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