CS Executive · Tax Laws and Practice · Time, Value and Place of Supply
Kaveri Machines Ltd, Pune, sells a machine to Anand Traders for Rs 2,00,000. In the invoice it separately charges Rs 6,000 as packing charges and Rs 4,000 as commission for arranging the sale. Ignoring GST itself, what is the value of supply under section 15?
The value of supply is Rs 2,10,000. Packing charges and commission charged by the supplier to the recipient are incidental expenses that section 15(2)(c) adds to the price, so Rs 2,00,000 plus Rs 6,000 plus Rs 4,000 gives the taxable value.
- ARs 2,00,000
- BRs 2,04,000
- CRs 2,06,000
- DRs 2,10,000Correct
Explanation
Section 15(2)(c) includes incidental expenses such as commission and packing charged by the supplier to the recipient. Value = 2,00,000 + 6,000 + 4,000 = Rs 2,10,000. Rs 2,04,000 or Rs 2,06,000 wrongly omits one of the two items.
Did you get it right without looking?
One question tells you little. A timed set on Time, Value and Place of Supply shows your real accuracy, how long you take and where you lose marks.
More Time, Value and Place of Supply questions
- Under the IGST place of supply rules for services, Pinnacle Software Pvt Ltd, Pune, provides consulting services to Kavya Traders, a GST-reg…
- A manufacturer sells goods to a customer for Rs 1,00,000. Under a prior agreement linked to specific invoices, it later gives a Rs 5,000 dis…
- Meera Pharma sold goods to Nikhil Distributors for Rs 1,00,000 under an agreement made before the supply, which gave a 5% volume discount af…
- Under the Explanation to Section 15 of the CGST Act, 2017, which of the following pairs of persons is deemed to be related persons?
- Under section 13(4) of the CGST Act, 2017, a supplier issues a gift voucher that can be used only for one specified service at a fixed price…
- Kiran Traders receives a service on reverse charge from a supplier who must issue an invoice. The supplier's invoice is dated 1 March, and t…