Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 27-12-2016 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN SECTION 15 VALUE OF TAXABLE SUPPLY UNDER REVISED GST LAW:- There is material departure in the valuation provisions of a taxable supply in the revised GST Law. A comparative analysis of the changes made with respect to present laws is made as follows:- The valuation of taxable supply has been specified to be transaction value provided that supplier and recipient are not related and price is the sole consideration for supply. Apart from this, certain inclusions and exclusions have also been provided in the transaction value which is discussed in the succeeding paragraphs. Firstly, we discuss the deletions made in the inclusi
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e free supplies are not includible in the transaction value. However, at the same time, clause (b) of the section states that any amount incurred by recipeint of the supply that was supposed to be paid by supplier and which is not included in the price is to be added in the transaction value. This somehow indicates that free supplies should also be included in the transaction value but specific deletion of the clause leads to interpretation that free supplies are not to be included in transaction value. Second deletion is regarding royalties and licence fees related to the supply of goods and/or services being valued that the recipient of supply must pay, either directly or indirectly, as a condition of the said supply, to the extent that s
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pplier and charged in relation to the supply of goods and/or services was also to be included in the transaction value. But, this clause has been deleted in the Revised GST Law which is highly appreciated. Presently, as per Service Tax Laws, there is Delhi High Court decision in the case of Inter Continental Techno Crafts 2012 (12) TMI 150 – DELHI HIGH COURT quashing the Rule 5 specifying that reimbursable expenditure is includible in the taxable value of service. There are also amendments in certain clauses, prominent being that as per old GST Law, value of supply included any taxes, duties, fees and charges levied under any statute other than the SGST Act or the CGST Act or the IGST Act. However, as per revised GST Law, value of supply wi
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