CS Executive · Tax Laws and Practice · Time, Value and Place of Supply
Sharma Traders supplies machinery to Kapoor Industries for a price of Rs 5,00,000. Sharma separately charges Rs 12,000 as packing charges and Rs 8,000 as commission on the same invoice. Ignoring GST itself, what is the value of supply under Section 15?
The value of supply is Rs 5,20,000. Incidental expenses, including packing and commission charged by the supplier to the recipient, form part of the value of supply, so both Rs 12,000 and Rs 8,000 are added to the Rs 5,00,000 price.
- ARs 5,00,000
- BRs 5,12,000
- CRs 5,20,000Correct
- DRs 5,08,000
Explanation
Section 15(2)(c) includes incidental expenses such as commission and packing charged by the supplier. Value = 5,00,000 + 12,000 + 8,000 = Rs 5,20,000. Rs 5,12,000 omits commission, and Rs 5,08,000 omits packing.
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