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 ofgoods 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:
Where 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 Rs.5000 per quintal on the day of supply. Another independent supplier is supplying groundnuts of like kind and quality to the said agent at the price of Rs.4550 per quintal. The value of the supply made by the principal shall be Rs.4550 per quintal or where he exercises the option the value shall be 90% of the Rs.5000 i.e. is Rs.4500 per quintal.
b)Where the value of a supply is not determinable under clause (a), the same shall be determined by application of rule 30 or rule 31 in that order.