definiens: shall mean the gross amount billed or invoiced by or on behalf of the Companyand / or its Affiliates and/or Sublicensees ( the ) on Sales of Licensed Products, less the following : ( i ) sales taxes ( including value added taxes ) to the extent applicable to suchsale and included in the invoice in respect of such Sale ; ( ii ) discounts, credits or allowances, ifany, actually granted on account of price adjustments, recalls, rejections or returns of LicensedProducts previously sold ; ( iii ) bad debts, provided that they are recorded as such in theInvoicing Entity ’s books, in accordance with acceptable accountancy practices ; and ( iv)packaging, freight, shipping and insurance charges, to the extent that such items are separatelyitemized and invoiced and actually paid as evidenced by invoices, receipts or other appropriatedocuments ; provided however, that in any transfers of Licensed Products between the InvoicingEntity and an Affiliate of the Invoicing Entity, Net Sales shall be equal to the total amountinvoiced by such Affiliate on resale to an independent third party purchaser, in each case, afterdeducting the amounts referred to in clauses ( i ) through ( iv ) above, to the extent applicable . Incase the Affiliate uses the Licensed Products internally without resale within 6 ( six ) months fromsuch invoice, the Company shall pay royalties as if such resale occurred at market price