Rule 29. Value of supply of goods made or received
through an agent. -
The value of supply of goods between the principal and
his agent shall-
(a) be the open market value of the goods being
supplied, or at the option of the supplier, be ninety percent. of the price
charged for the supply of goods of like kind and quality by the recipient to
his customer not being a related person, where the goods are intended for
further supply by the said recipient.
Illustration : A principal supplies groundnut to his
agent and the agent is supplying groundnuts of like kind and quality in
subsequent supplies at a price of five thousand rupees per quintal on the day
of the supply. Another independent supplier is supplying groundnuts of like
kind and quality to the said agent at the price off our thousand five hundred
and fifty rupees per quintal. The value of the supply made by the principal
shall be four thousand five hundred and fifty rupees per quintal or where he exercises
the option, the value shall be 90 percent. of five thousand rupees i.e., four
thousand five hundred rupees per quintal.
(b) where the value of a supply is not determinable
under clause (a), the same shall be determined by the application of rule 30 or
rule 31 in that order.
