Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
D. Forum
What's New
 Latest Cases 


Discussions Forum
Home Forum Income Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Trading or Manufacturing, Income Tax

Issue Id: - 116854
Dated: 18-11-2020
Trading or Manufacturing

  • Contents

Dear All

My client is a LLP (Say X) and brand owner of a bumper item. It has owned some moulds related to bumper manufacturing.

Due to lower space, it has provided moulds to a sister concern (say Y) on delivery challan for manufacturing of bumpers with the following facts:

- Y itself procures raw material for the manufacture of bumpers and with that raw material produces bumpers as per specification by X and sells it to X at a reduced price to give the benefit of cost of moulds provided.

- X purchases the bumpers from Y and affixes few screws on it which are necessary to sell it further and paste its brand sticker, pack it and sells it to its customers.

Now my queries are as under:

1) Since mould owner is X and it is used by Y, who is eligible for the depreciation?

2) And what will be the nature of the business activity of the X to be shown and presented in financial statements like purchases from Y are semi-finished goods or complete trading goods or it can also be raw material purchase by any means?

3) Sale by X is of manufacturing sale or trading sale or any other term can be used like contract manufacturing?


Post Reply

Posts / Replies

Showing Replies 0 to 0 of 0 Records

No Post / Reply found for this query

Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||