https://www.taxtmi.com/forum/issue?id=116854 Issue: LLP X owns moulds provided to sister Y, who procures raw material and manufactures bumpers to X's specifications and sells finished bumpers to X at a reduced price; X adds minor finishing and resells. Core tax question is depreciation eligibility-whether X or Y may claim depreciation-determined by legal ownership, actual use, control, and contractual allocation. Accounting questions concern whether purchases from Y should be recorded as raw materials, semi-finished goods, or trading stock, and whether X's subsequent sales are manufacturing sales, trading sales, or reflect contract manufacturing, guided by substance over form and risk/title allocation. en-us Wed, 18 Nov 2020 08:07:43 +0530 Thu, 23 Jan 2025 15:54:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=116854 Issue: LLP X owns moulds provided to sister Y, who procures raw material and manufactures bumpers to X's specifications and sells finished bumpers to X at a reduced price; X adds minor finishing and resells. Core tax question is depreciation eligibility-whether X or Y may claim depreciation-determined by legal ownership, actual use, control, and contractual allocation. Accounting questions concern whether purchases from Y should be recorded as raw materials, semi-finished goods, or trading stock, and whether X's subsequent sales are manufacturing sales, trading sales, or reflect contract manufacturing, guided by substance over form and risk/title allocation. Discussion-Forum Income Tax Wed, 18 Nov 2020 08:07:43 +0530 https://www.taxtmi.com/forum/issue?id=116854