INDIRECT TAX
VALUE OF SUPPLY
TYBCOM/TYBMS/TYBFM
Q.1 Ms. Krutika purchased a car Rs.5,00,000/- plus GST at 5% from Mr.
Amol. Mr. Amol also received Rs.40,000 towards car accessories which
were not included in the price. A discount of Rs.15,000/- was given by Mr.
Amol to Ms. Krutika at the time of sale of car. Mr. Amol hired Mr. Kiran for
delivering the car to Ms. Krutika . An amount of Rs.20,000/- was paid by Ms.
Krutika to Mr. Kiran.
Calculate the value of supply as per the provisions of section 15 of
CGST Act, 2017.
Q.2 Mr. Pratik sold machinery worth Rs.6,72,000/- inclusive of GST at 12%
to Mr. Aakash. Installation charges of Rs.10,000/- were charged separately.
A subsidy of Rs.75,000/- from Association of Traders and a subsidy of
Rs.50,000/- from Maharashtra Government was received.
Further, Mr. Pratik charged interest of Rs.7,500/- for delay in payment
by Mr. Aakash.
Calculate the value of supply as per the provision of section 15 of
CGST Act, 2017.
Q.3 Axon Traders entered into a contract with Ms. Xolo for supply of goods
worth Rs.3,00,000. It was agreed that any additional expense incurred to
complete the sale will also included in the contract value. Mr. Xolo incurred
the following expenses to complete the sale:
Expenses Amount
Inspection 950
Freight 15,000
Testing charges 6,250
Insurance charges 5,000
Loading charges 3,540
Packaging charges 8,000
Mr. Xolo received subsidy of Rs.30,000 from Bharat Manufacturer’s
Association per transaction. Determine the value of Taxable Supply as per
the provision of section 15 of CGST Act.
Q.4 Mr. Angad sold machinery worth Rs. 7,28,000 inclusive of GST @ 12%
to Mr. Avinash. Installation charges of Rs. 6,500 was paid separately. A
subsidy of Rs. 75,000 from Merchant Association and a subsidy of Rs.
50,000 from Maharashtra state Government was received. Further Mr.
Angad charged Rs.500 for delay in payment by Mr.Avinash . Calculate the
value of supply as per the provisions of section 15 of CGST Act , 2017.
Q.5 M/s Shivay Udhyog has provided the particulars relating to the goods
sold by it to Ganesh Enterprises.
Particulars Amount
List price of the goods (Exclusive of Expenses, Taxes and 60,000
Distribution)
Tax levied by Local Municipal Corporation on above goods 10,000
Primary Packing 2,500
Extra Protective Packing 1,000
CGST and SGST chargeable on the goods 7,200
Special Printing of its Name and Trademark on the goods 2,500
Weightment Charges 2,000
M/s Ganesh Enterprises received 5,000 as subsidy from "Life is Good" a
Non-Profit making Organisation in respect of timely supply of goods.
The price of 60,000 is after considering such subsidy. M/s Shivai Udyog
offers 5% trade discount on the list price of the goods.
Determine the value of Taxable supply made by M/s. Shivai Udyog. Also,
calculate SGST @ 2.5% and CGST @ 2.5%.
Q.6 M/s Radha Traders supplied certain goods worth 5,25,000/- and
Equipments worth 8,50,000/- to M/s Pranjal works. Following expenses
were incurred:
Particulars m/s Radha Traders M/s Pranjal Works
Goods Equipments Goods Equipments
1. Commission 10,000 - - 15,000
charges
2. packing charges 7,000 2,000 - -
3. Insurance charges 2,000 8,000 - -
4. Freight - 3,500 7,000 4,700
5. Testing charges - - 1,000 1,500
6. Inspection charges 570 1,350 - -
7. Designing charges 2,270 3,290 - -
8. Pre-installation - - 5,370 7,040
consultancy
9. Documentation 1,100 - - 2,900
10. Delivery charges - - - 1,480
a) All the expenses incurred by M/s Pranjal works were on behalf of M/s
Radha Traders except the Testing charges.
b) The Packing charges paid by M/s Radha Traders was on request by M/s
Pranjal works.
c) M/s Radha Traders gave a discount of 20,000/-on Equipments.
d) Subsidy of 18,000/- was received on goods from central Government and
of 20,000/- on equipments from Small Business Association.
e) Price of Goods includes GST at 5%.
f) GST Rate applicable on equipments is 12%.
g) Taxes other CGST/ SGST/ IGST charged separately by M/s Radha Traders
for Goods-12,000/- and Equipments 21,000/-.
Calculate the value of supply as per the provisions of section 15 of CGST
Act, 2017. Also, GST payable.
