The India’s biggest tax reform is however now a reality. A
comprehensive form of dual Goods and Services Tax (GST) has however
replaced the complex and the multiple indirect tax structure from 1 July
2017.
The purpose of this article however is to make the reader aware of
the determination of the value in respect of certain supplies under GST.
We would however take eac and every aspect under this turn by turn
.
- The Value of the supply of
goods or services where thus the consideration is however not
wholly in money:-
Where thus the Value of supply of the goods or
services where the consideration is however not wholly in money, the
value of supply shall however be;
a) Considered as the open market value (OMV) of thus such kind of
supply.
b) If however OMV is not available, the sum of the
total consideration which is in money and also such further
amount in money that is however equivalent to the consideration
which is not in money ,if such an amount is however known at the time of
supply.
c) If the value is thus not determinable as above in
(a&b) then the value of the like kind and quality.
d) If the value is however not determinable as above in (a,
b & c ) then the sum of the total consideration which is
in money and also such further amount in the money that is
however equivalent to the consideration which is not in money as is thus
determined by rule 4& 5 in that order.
2. The Value of the supply of the goods or services or also
both between the distinct or the related person, (other than
through an agent) :-
- Thus
the open market value (OMV) of such kind of supply.
b) If however OMV is not available, then the value of the
like kind and quality.
c) If the value is however not determinable as above (a & b )
then thus the value as is determined by rule 4& 5 in that
order.
3. In respect of the value of the supply of goods which are made
or received (through an agent ) deals with this respect :-
Thus , the value of the supply of goods between the
principal and his agent shall however be;
a) The OMV of the goods which is thus being supplied.
b) Or also at the option of the supplier, 90% of the price which
is however charged for the supply of the like kind and the quality by the
recipient (which is thus intended for the further supply) to his customer which
is not being related.
c) If the value is however not determinable as above (a & b)
then the value as is thus determined by rule 4& 5 in that order.
4. In respect of the value of the supply of the goods or services
or both which is however based on the cost:-
Where thus the value of the goods or the services is thus
not determinable by any kind of preceding rules, the value however
shall be 110% of the cost of the production or either manufacture
or the cost of provision of such kind of services.
5. With respect to Residual method for the purpose of
determination of the value of supply of goods or services or both:-
Where thus the value of the supply of goods or services or
either both however cannot be determined under rule 1 to 4 the same shall
however be determined by also using a reasonable means which is
consistent with the principle and the general provision of section 15 and
also its rules,( in the case of services, the supplier may also
opt for this rule).
6. Thus , determination of value in respect of certain supplies
is as follows :
- For Booking of the air
tickets(travel agent)
The valuation procedure is 5% which is of the basic fare in the
case of domestic bookings. 10% which is of the basic fare in the case of
international bookings. (basic fare however means on which the commission
is thus normally paid to the agent)
2. For , the Life insurance business
The valuation procedure is a) Gross premium which is thus charged
– allocated for the purpose of investment or either savings ( if such
amount is however intimated to be the policy holder which is at the
time of supply of the services).
b) 10% of the single premium (annuity) charged.
c) Also , In all the other cases; 25% of the premium
(for the first year), 12.5% of the premium is thus charged in the
subsequent years.
3. On the Second hand goods( where no input is claimed)
Valuation procedure is to be calculated by the difference
between the selling and purchase price
4. For the Value of token, voucher, coupon or either
stamp(other than the postage) which is however redeemable against a
supply of the goods and services or either both
Valuation procedure is however to be calculated which is Equal to
the money value of the goods or services or either both.
5. Also , where the taxable services (as is notified
by the govt. on the recommendation of the Council.) as is however
refereed in the Entry 2 of the Schedule which is between the
distinct person (U/s 25), other than those where the input is thus
not available U/s 17(5)
The valuation procedure is Nil.
Legal Raasta , an online web portal which provides more than 100+
legal services has built however an extremely easy-to-use and an intuitive
software for GST . However , the founders of LegalRaasta a
startup which provides legal services aims at easing the difficulties related
to GST by providing many services . Choosing LegalRaasta is beneficial as:
1. It has , 30+ offices in India
2. It has 10+ years experience
3. It helps to save your time
4. There is a cash back guarantee
Some of the services which it provides are :
1. Tax Filing/TDR - GST
Registration , GST
Return, ITR , TDS
Return filing, Business
income return , Bulk return filing , Revised
return filing , Respond
to tax notice
It thus also provides many more services .
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
Comments
Post a Comment