Amortised cost of tool- inclusion in the value for GST
Query (Issue) Started By: – Ramaswamy S Dated:- 10-11-2017 Last Reply Date:- 22-3-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Erstwhile Excise law the cost of the amortised value of tool is to be added to arrive at the transaction value as per Section 4 read with Valuation rules.
Now under Section 15 of the CGST Act read with Rule 27 of the CGST Rules, it appears that the amortised cost ot the tool to be included in the value for GST.
GOI Twitter reply to my tweet also says Yes to be included.The tweets of GOI have a disclaimer
However, the customers mostly the MNC and auto giants are of the view that under the GST , the amortised cost of the tool is not includib
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
we can argue that since the supplier has not incurred any expenditure in respect of the tool supplied free of cost amortized value of the tool need not be included in the transaction value. However the issue will get settled only through litigation.
Reply By CS SANJAY MALHOTRA:
The Reply:
Endorsed the views of Sh. Rajgopalan as is area of dispute.
Reply By Ramaswamy S:
The Reply:
The supplier himself manufactures the tool as per the design and specification of the customer. The tool so manufactured were used in the manufacture of components for the customer. Therefore, the amortised cost of the tool was added to the value of the component when the components were sold to the customer.
In the erstwhile law , for the tools exemption und
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =