Stock Valutaion while ttransferring to Branches in different states

[ravi kiran]

Dear Sir

We seek your guidlines.

1) Head office in one state and branches in different states having different GST Numbers under the same PAN No.

2) Balance sheet is one only for Head office and its branches accross different states under same PAN No

3) Query: Stock transfers from Head office to branches to be valued at cost price or any profit to be added?

4) We are importing goods in head office and transferring to branches. We have landed cost available.

5) Do we need to transfer the goods to branches at cost price or do we need to add 10% of the landed cost?

Thanks & Regards

Ravi Kiran

AI Summary

Open market value governs valuation for transfers between distinct registrations; invoice value deemed OMV if recipient claims input tax credit.
Valuation for transfers between a head office and separately registered branches follows a hierarchy: open market value first; if unavailable, value of goods of like kind and quality; failing that, fallback valuation rules apply. Landed cost including customs duties can constitute open market value for imported goods. Where the recipient is eligible for full input tax credit, the invoice value is deemed to be the open market value, so an additional notional margin need not be added. Supporting evidence is required when using cost-plus or unrelated sale comparables.