Valuation of rent a cab services
Query (Issue) Started By: – Ashwini Hegde Dated:- 6-5-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 12 Replies
GST
Whether toll charges, permit charges and parking charges collected indicated separately in the invoice as reimbursement chargeable to GST?
Reply By Alkesh Jani:
The Reply:
Sir, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value (refer Section 15(2) of the CGST Act, 2017).
In view of abov
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n Sl. No.23 of Notification No. 12/2017- Central Tax (Rate) dated 28.6.2017 exempts gist payable on toll charges collected by the person in charge of the toll booth.station. It is not exempting inclusion of toll charges in the value of the goods or services or both supplied.
In view of the provisions of Section 15 (2) (c) of CGST Act 2017 " incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services" is includible in the value of supply. Therefore except CGST, SGST or UTGST all other expenses incurred for the
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r the GST Valuation Rules 2017,a pure agent is given the following meanings.
A “pure agent” means a person who:-
(a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to thegoods or services or both so procured or provided as pure agent of the recipient of supply;
(c) does not use for his own interest such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account.
Some examples of pure agent are:
1. Port fees, Port charges, Custom
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