CMA Intermediate · Direct and Indirect Taxation · Time and Value of Supply
Sharma Traders Pvt. Ltd. sells goods to an unrelated buyer at a price of ₹80,000. It separately charges ₹6,000 as packing charges and ₹4,000 as commission on the same invoice. GST is charged extra. What is the value of supply under Section 15?
The value of supply is ₹90,000. Packing charges and commission charged by the supplier to the recipient are incidental expenses that Section 15(2)(c) includes in value, so they are added to the ₹80,000 price: 80,000 + 6,000 + 4,000.
- A₹80,000
- B₹84,000
- C₹86,000
- D₹90,000Correct
Explanation
Section 15(2)(c) includes incidental expenses, including commission and packing, charged by the supplier to the recipient. Value = 80,000 + 6,000 + 4,000 = ₹90,000. Taking only one of the two charges, or neither, understates the value.
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