What is the treatment of Transactions between related parties Section 17 of DVAT Act 2004
If
(a) a registered dealer sells or gives goods to a related
person;
(b) the terms or conditions of the transaction have been
influenced by the
relationship; and
(c) the related person had purchased the goods, the related person would not be entitled to a tax credit for the purchase, or the amount of the tax credit would be reduced under sub-section (3) of section 9 of this Act;
the transaction shall be deemed to be a sale made by the registered dealer and the sale price of the goods shall be deemed to be their fair market value.
Section 6 : Sale exempt from tax
Section 7 : Certain sales not liable to tax
Section 8 : Adjustments to tax
Section 10 : Adjustment to tax credit
Section 11A : Tax on goods supplied by contractee
Section 12 : Time at which turnover, turnover of purchases and adjustments arise
Section 14 : Treatment of stock brought forward during transition
Section 15 : Second-hand goods
Section 16 : Composition scheme for specified dealers
Section 16A : Special provisions relating to casual traders
Section 17 : Transactions between related parties