Scribd
Upload
164 views4 pages

Value of Supply

1. The document provides examples to calculate the value of taxable supply as per Section 15 of the CGST Act, 2017. It discusses including/excluding various taxes, subsidies, discounts and other payments in determining the transaction value. 2. Seven problems are presented with numerical details of supplies involving goods and services. Readers are asked to compute the value of taxable supply and GST liability based on the information provided and GST rates. 3. Solutions require identifying the components to be included in or excluded from the transaction value as per GST valuation rules to arrive at the taxable value and calculate the applicable GST.

Uploaded by

Sachin Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
164 views4 pages

Value of Supply

1. The document provides examples to calculate the value of taxable supply as per Section 15 of the CGST Act, 2017. It discusses including/excluding various taxes, subsidies, discounts and other payments in determining the transaction value. 2. Seven problems are presented with numerical details of supplies involving goods and services. Readers are asked to compute the value of taxable supply and GST liability based on the information provided and GST rates. 3. Solutions require identifying the components to be included in or excluded from the transaction value as per GST valuation rules to arrive at the taxable value and calculate the applicable GST.

Uploaded by

Sachin Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

SRINIVASA ACADEMY

(An Academy of Professionals for CA / ICWA / CS)


Contact no: 7299953258 / 7299963258 / 7299973258 / 7299993258

VALUATION OF TAXABLE SUPPLY

Condition: -

1. There should be supply of goods and services


2. Seller and buyer are not related
3. Price has sole consideration

If conditions satisfied

Yes No

Transactional value Valuation Rules

Computation of Assessable value


Price actually paid xxx
Add: Duties / Taxes xxx
Except: GST (xxx) xxx
Add: Any amount paid by buyer to seller (or) to a third party on behalf of seller xxx
Add: Interest for delayed payment of Consideration xxx
Add: Incidental Expenses xxx
Add: Subsidies xxx xxx
Except : Government subsidies (xxx)
Less: Discount (xxx)
Taxable Value of Supply xxxx
SRINIVASA ACADEMY
(An Academy of Professionals for CA / ICWA / CS)
Contact no: 7299953258 / 7299963258 / 7299973258 / 7299993258

VALUATION OF TAXABLE SUPPLY

Value of taxable supply – Section 15 :


1. XYZ Pvt. Ltd has provided the following particulars relating to goods sold by it to ABC
Pvt Ltd

Particulars Rs.
List price of the goods (exclusive of taxes and discounts) 125000
Tax levied by Municipal Authority on the sale of such goods 15000
CGST and SGST chargeable on the goods 19200
Packing charges (not included in price above) 15500
XYZ Pvt Ltd received Rs.9500 as a subsidy from a Non profit making organisation in respect
of timely supply of such goods. The price of Rs.125000 of the goods is after considering
such subsidy. XYZ Ltd. Offers 4% discount on the list price of the goods which is recorded
in the invoice for the goods
Determine the value of taxable supply made by SYZ Pvt. Ltd

Computation of value of taxable supply and tax payable:


2. Determine the value of taxable supply as per section 15 of the CGST Act, 2017 and the
Rules thereof:

Contracted sale price of goods (including CGST and SCST @ 5%) Rs.1056000
The contracted sale price includes the following elements of cost:
i. Cost of drawings and design Rs5000
ii. Cost of primary packing Rs.2000
iii. Cost of packing at buyer’s request Rs.4000
iv. Freight and insurance from ‘place of removal’ to buyer’s premises Rs.43000

A discount of Rs.6000 was given by the supplier at the time of supply of goods CGST and
SGST is levied @ 5%
Computation of value of taxable supply:

3. From the following information determine the value of taxable supply as per provisions
of section 15 of the CGST Act, 2017?

Value of machine (including GST @ 12%) Rs.1500000


SRINIVASA ACADEMY
(An Academy of Professionals for CA / ICWA / CS)
Contact no: 7299953258 / 7299963258 / 7299973258 / 7299993258
The invoice value includes the following
1. Taxes (other than CGST/SCGST/IGST) changed separately by the supplier Rs.15000
2. Weighment and loading charges Rs.25000
3. Consultancy Charges in relation to pre-installation planning Rs.10000
4. Testing Charges Rs.2000
5. Inspection Charges Rs.4500

Other information:
i. Subsidy received from Central government for setting up factory in backward region
Rs.51000
ii. Subsidy received from third party for timely supply of machine to recipient Rs.50000
iii. Trade discount actually allowed shown separately in invoice Rs.24000

Given reasons with suitable assumptions where necessary.


4. RG Pvt. Ltd. provides the following particulars relating to goods sold by it to GK Pvt.
Ltd.

Particulars Amount(Rs.)
List price of the goods (Exclusive of taxes and discounts’) 1000000
Tax levied by Municipal Authority on the sale of such goods 100000
CGST and SGST chargeable on the goods 200880
Packing charges (not included in price above) 20000
RG Pvt. Ltd. received Rs.40000 as a subsidy from a NGO on sale of such goods.
The price of Rs.1000000 of the goods is after considering such subsidy.
RG Ldt. Offers 2% discount on the list price of the goods which is recorded in the
invoice for the goods.
Determine the value of taxable supply made by RG Pvt. Ltd.

5. From the following information determine the value of taxable supply as per proviouns of
section 15 of the CGST Act 2017?

Contracted value of supply of goods (including GST @ 18%) Rs.1100000


The contracted value of supply includes the following:
1. Cost of primary packing Rs.25000
2. Cost of protective packing at recipient’s request for safe transportation Rs.15000
3. Design and engineering charges Rs.85000
SRINIVASA ACADEMY
(An Academy of Professionals for CA / ICWA / CS)
Contact no: 7299953258 / 7299963258 / 7299973258 / 7299993258
Other information :
i. Commission paid to agent by recipient on instruction of supplier Rs.5000
ii. Freight and insurance charges paid by recipient on behalf supplier Rs.75000
Given reasons with suitable assumptions where necessary.

6. Raman Ltd., a registered supplier in Mumbai (Maharashtra) has supplied goods to


SahilTYraders and Jaggi Motors Ltd, located in Ahmedabed(Gujarat) and Pune
(Maharashtra) respectively. Raman Ltd. Has furnished the following details for the
current month:

S.No. Particulars Sahil Traders Jaggi Motors


(Rs.) Ltd. (Rs.)
1 Price of the goods (excluding GST) 20000 15000
2 Packing charges 600
3 Commission 400
4 Weighment charges 1000
5 Discount for prompt payment (recorded in the 500
invoice)

Items given in points (i) to (v) have not been considered while arriving at price of the goods
given in point (i) above
Compute the GST liability [CGST & SGST or IGST, as the case may be ] of Raman Ltd. for
the given month. Assume the rates of taxes to be as under.
Particulars Rate of tax
Central tax (CGST) 9%
State Tax (SGST) 9%
Integrated tax (IGST) 18%
Make suitable assumptions, wherever necessary.
Note: The supply made to Sahil Traders is an inter-State supply.

7. Admission to True Theater is Rs 90 per ticket for a Tamil Movie as well as for a Hindi
Movie plus entertainment tax Rs 10% on Tamil Movie and 20% on other languages. In the
month of November, True Theater sold 2000 tickets of Tamil Movie and 1500 tickets of
Hindi Movie. Find the value of taxable supply of service. Applicable rate of GST is 18% (for
Tamil movie tickets) & 28% (for Hindi movie tickets). Find the GST liability if any.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy