Skip to content

CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Under the CGST Act, 2017, the value of a taxable supply is ordinarily the transaction value. Which condition must be satisfied for the price actually paid or payable to be accepted as the transaction value?

The price is accepted as transaction value only when the supplier and recipient are not related and the price is the sole consideration for the supply. If either condition fails, the value is determined in the prescribed manner instead.

  1. AThe supplier and recipient are not related and the price is the sole consideration for the supplyCorrect
  2. BThe supplier and recipient are related but the price is below the market price
  3. CThe price is fixed by the Central Government for every supply
  4. DThe price has been paid only through a bank account

Explanation

Section 15(1) accepts the price actually paid or payable as the transaction value only where the supplier and recipient are not related and the price is the sole consideration. Related parties or non-price consideration take the valuation outside sub-section (1). The other options add conditions that the section does not contain.

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.

Practise Time, Value and Place of SupplyFree diagnostic mock

More Time, Value and Place of Supply questions