CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Value of Supply
Aarav Traders sells goods to Bharat Retail for a price of Rs 1,00,000. It separately charges Rs 4,000 as packing charges before delivery and Rs 6,000 as commission to the buyer's account, both billed by Aarav Traders. Ignoring GST, what is the value of supply under Section 15?
The value of supply is Rs 1,10,000. Incidental expenses such as packing and commission charged by the supplier to the recipient are included in value under Section 15(2)(c), so both Rs 4,000 and Rs 6,000 are added to the price of Rs 1,00,000.
- ARs 1,00,000
- BRs 1,04,000
- CRs 1,06,000
- DRs 1,10,000Correct
Explanation
Section 15(2)(c) includes incidental expenses, including commission and packing, charged by the supplier to the recipient. Value = 1,00,000 + 4,000 + 6,000 = Rs 1,10,000. Rs 1,04,000 includes packing only and misses the commission.
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