(Chinhphu.vn) – The Nissin Vietnam Brake Production Company is negotiating a technology transmission contract, in terms of payment method, the Company chooses to "pay the period according to the percentage (%) of the net selling price" as prescribed in Item 3, Article 3 of the Decree 133/2008 / ND-CP.

The company currently has the costs of purchasing semi-finished products, parts, details; components including imported and purchased domestically. Through the receiving and answering system of businesses, the Nissin Vietnam Brake Production Company would like to ask, when calculating the net selling price, is it able to subtractonly the cost of imported parts, details and components; and do not subtract the costs of parts, details and components purchased domestically. Is this calculation correct?

Regarding this issue, the Ministry of Science and Technology replies as follows:

Pursuant to Item 3, Article 3 of the Government's Decree No. 133/2008 / ND-CP of the December 31, 2008, detailing and guiding the implementation of a number of articles of the Law on Technology Transmission, net selling prices are calculated as follows: “The net selling price is determined to equal the selling price of products or services turned out by the technology transmission (according to sale invoices) minus value-added tax, excise tax, export duty (if any); costs of semi-finished products, parts, details and components imported or purchased at home; package material and packaging costs, freight for transportation of products to outlets, and advertisement expenses;”.

Thus, if the Company imports foreign semi-finished products, parts, details and components and has just purchased semi-finished products, parts, details and components in Vietnam to produce products according to technology transmission, when calculating net selling prices, the Company must deduct all expenses for the purchase of semi-finished products, parts, details, components purchased from abroad and domestic purchases.