TaxTMI 
TaxTMI 
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.
Goods sold to relate person-taxability
22 Mar 2013 
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Related-party transfer valuation requires cost-plus basis for taxable value when goods are transferred within a group.
For intra company transfers or internal consumption of excisable goods, valuation follows cost accounting principles and the statutory rule prescribing a cost based uplift: the taxable value is computed on the cost of production or manufacture increased to reflect the prescribed margin, namely 110% of the cost of production or manufacture, for excise duty purposes. (AI Summary)
For intra company transfers or internal consumption of excisable goods, valuation follows cost accounting principles and the statutory rule prescribing a cost based uplift: the taxable value is computed on the cost of production or manufacture increased to reflect the prescribed margin, namely 110% of the cost of production or manufacture, for excise duty purposes. (AI Summary)