7.
VALUE OF SUPPLY
1) Yogrishi rents out a commercial building owned by him in Sanskriti Society, Noida, U.P. to
Bhaarat for a monthly rent of ` 1,00,000. He pays municipal tax of ` 20,000 which he has
not recovered from Bhaarat. Yogrishi also pays the maintenance charges of ` 5,000
(reimbursed to him by Bhaarat) for the month as charged by the Society. The value of
supply for the month of January is . All the amounts given hereunder are exclusive of
GST.
a) 1,00,000
b) 1,20,000
c) 1,25,000
d) 1,05,000
2) Sapiant Ltd., registered under GST, supplies machinery used for making bottle caps to
Chandra Ltd. at a price of ` 42,00,000 (excluding all taxes and other expenses). Apart from
the price of the machinery, Sapiant Ltd. charges from the customer the associated handling
and loading charges of ` 10,000 and installation and commissioning charges of ` 1,00,000.
The value of supply of machinery is .
a) 42,00,000
b) 43,10,000
c) 43,00,000
d) 42,10,000
3) Bhoora Ltd., a registered supplier in Surat, Gujarat sold goods to Kaala Ltd. of Delhi
on 6th April for ` 5,00,000 (excluding GST) with a condition that if Kaala Ltd. failed to
make payment within 30 days of the delivery of the goods, interest @ 2% per month
on said price of ` 5,00,000 will be charged for the period of delay. Goods were delivered
and the invoice was issued, on 5th April. Kaala Ltd. paid the consideration for the goods on
20th May along with applicable interest. Kaala Ltd. refused to pay any tax payable on the
interest amount. Applicable rate of GST in this case is 18%. The value of supply,
in the given case, is .
a) 5,00,000
b) 5,05,000
c) 5,04,237
d) 5,95,000
4) Dhara Private Ltd. is engaged in supply of taxable goods. In the current month, it supplied
1,000 units of such goods to Jal & Co. at a unit price of ` 250 & 5,000 units to Vayu & Co. at
a unit price of ` 230. It has received a subsidy of ` 1,00,000 from a NGO, Urja, for the
current month for the energy conserved by during the month. The value of supply of goods
to Jal & Co. and Vayu & Co. is and respectively.
a) 2,50,000; 11,50,000
b) 2,50,000; 12,50,000
c) 3,50,000; 11,50,000
d) 3,00,000; 12,00,000
5) Sapiant Ltd., registered under GST, supplies machinery used for making bottle caps to
Chandra Ltd. at a price of ` 40,00,000 (excluding all taxes and other expenses). A cash
discount of 2% on the above price of the machinery is offered at the time of supply since
Chandra Ltd. agrees to make the payment within 15 days of the receipt of the machinery at
its premises. Sapiant Ltd. receives a price linked subsidy of ` 2,00,000 from its holding
company Diligent Ltd. The value of supply of machinery is .
a) 39,20,000
b) 42,00,000
c) 41,60,000
d) 41,20,000
6) Discount given after the supply has been effected is deducted from the value of taxable
supply, if –
(i) such discount is given as per the agreement entered into at/or before the
time of such supply
(ii) such discount is linked to the relevant invoices
(iii) proportionate input tax credit is reversed by the recipient of supply
(a) (i)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii)
7) The director of M/s. Carrier Ltd. provided premises to it at a monthly rental of Rs. 2,50,000
which is registered as principal place of business (from where its carries out business opera
ons).
M/s. Carrier Ltd. wants to understand whether the monthly rental of Rs. 2,50,000 should be
termed as ‘transac on value’ for determina on of value of supply.
Will answer differ if premises is provided by independent supplier ie. M/s. Kalp Ltd.
a) No, Yes.
b) Yes, Yes
c) Yes, No
d) No, No
8) Piramal Ltd. has 24% shareholding of Anukul Ltd. Piramal Ltd. supplied goods to Anukul Ltd.
during the current FY.
Which of the following value shall be the value of goods under GST law?
a) Maximum Retail Price (MRP)
b) Exchange Value
c) Transaction value
d) Other than transaction value since supplier and recipient are ‘related person
Answers:-
1. C
2. B
3. C
4. A
5. D
6. D
7. A
8. C
