X Limited and Y Limited are related person as per explanation to section 15 of CGST Act, 2017. X Limited sold goods to Y Limited at ₹ 80,000. The similar goods are sold by X Limited in the open market at ₹ 1,25,000. Is the valuation possible as per section 15? Also find out the transaction value as per the applicable provisions:
A. Yes, ₹ 1,25,000
B. No, ₹ 1,25,000
C. Yes, ₹ 80,000
D. No, ₹ 80,000
Answer:B
X Limited and Y Limited are related person as per explanation to section 15 of CGST Act, 2017. X Limited sold goods to Y Limited at ₹ 80,000. The similar goods are sold by X Limited in the open market at ₹ 1,25,000. Is the valuation possible as per section 15? Also find out the transaction value as per the applicable provisions:
A. Yes, ₹ 1,25,000 B. No, ₹ 1,25,000 C. Yes, ₹ 80,000 D. No, ₹ 80,000