CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Value of Supply
Under the Explanation to Section 15, which of the following persons would be deemed related persons?
Persons who are officers or directors of one another's businesses are deemed related persons under the Explanation to Section 15. Regular dealing, being registered in the same State or paying an advance does not create a relationship for this purpose.
- ATwo companies where one buys regularly from the other at market prices
- BA supplier and a customer who are both registered in the same State
- CTwo persons who are officers or directors of one another's businessesCorrect
- DA manufacturer and a customer who has paid an advance
Explanation
The Explanation lists persons who are officers or directors of one another's businesses as related. Regular trading, same-State registration or paying an advance do not by themselves make persons related.
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