Section 17 in Daman and Diu Value Added Tax Regulation, 2005
17. Transactions between related persons.
- If -(a)a registered dealer enters into a transaction with the related person for sale of goods or sells or gives otherwise goods without adequate consideration to a related person; or(b)the terms or conditions of such transaction or sale or giving of goods have been influenced by seller being related with such person,the dealer shall not be entitled to a tax credit for the purchase of the goods or he shall be entitled to the proportionately reduced tax credit under sub-section (3) of section 9 and the transaction or sale or giving of goods 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.
