Goods sold to relate person-taxability

[Guest]

Sir,

One Ltd. Company sells goods to its other unit.Naturally the goods sold are chargeable to duty at 110% of value. How to compute this, what price to be relied for computing taxable value.

AI Summary

Company Seeks Guidance on Taxability of Goods Sold to Related Unit; Consult CAS-4 and Rule 8 for Compliance. A company is inquiring about the taxability of goods sold to its related unit, which are subject to duty at 110% of the value. The query seeks guidance on calculating the taxable value and which price should be used. One response advises consulting Cost Accounting Standard -4 (CAS -4) for guidance. Another response refers to Rule 8, stating that when excisable goods are used for internal consumption in manufacturing other articles, the value should be 110% of the cost of production or manufacture.