Chart 8 - Value Of Supply

Question 1

Sec 15(1)

Answer 1

Value of supply= Transaction value

Price actually paid/ payable
(+) parties unrelated
(+) price sole consideration

Question 2

15(2)

Answer 2

Inclusions

(a) duties, taxes, fees other than GST
(TCS under IT act not to be included in value of supply)

(b) Any obligation of supplier met by recipient

(c) incidental expenses

(d) interest, penalty, late fee for delayed payment

(e) subsidies linked to price (excluding CG/ SG Subsidies)

Question 3

15(3)

Answer 3

Exclude :

Discount
(a) given before/ at time of supply

(b) given after supply- discount existed prior agreement

Otherwise not excluded

Question 4

Assumptions

Answer 4

Assume interest, penalty and late fee are inclusive of GST hence taxable value calculation is to be done