Branch transfer

[S.C. WADHWA]

Dear Expert,

We are manufacturers of food products and paying duty on one product at MRP less abatement @Rs.1.30
and transfer the same item to our Delhi Depot @ 0.55 paise per piece. Where as from Delhi the said item is
being sold at 0.59 paise to small retailers and @0.54 to big buyers.
Now my query is whether selling of higher rate than transfer in our case is objectionable to any deptt. Please
give your expert opinion.
Regards,
WADHWA

AI Summary

Food Manufacturer Queries Duty on Higher Depot Selling Price; MRP Compliance Ensures No Extra Duty Needed. A manufacturer of food products inquired whether selling a product at a higher price from their Delhi Depot than the transfer price from the manufacturing site is objectionable. The initial response indicated that if the selling price from the depot is higher than the transfer price, differential duty must be paid. However, another expert clarified that as long as the Maximum Retail Price (MRP) remains unchanged at the depot, no differential duty is required, as the duty is based on the MRP, not the actual sale or transfer price, provided it does not exceed the MRP.