Page 25 - Chap24Computation of GST

Audit fee 0.50

Bank charges 0.10
Membership of Automobile Association 0.10
All the above amounts are exclusive of all kinds of taxes, wherever applicable. However, the
applicable taxes have also been paid by the company.

Further, following additional details are furnished by the company in respect of the payments and
receipts reported by it:
(i) Raw materials worth ` 0.50 lakh, purchased from a registered supplier located in Gujarat, were

destroyed due to fire in the factory and thus, could not be used in the manufacturing process.
Remaining raw material has been procured from various vendors located in Maharashtra.
(ii) Rent has been paid for the factory building located in Gujarat to its owner registered in Gujarat.
(iii) Payment for security services (services provided by way of supply of security personnel) for the
tax period has been made to Safe and Secure Solutions Pvt. Limited, a company located in Gujarat

and not registered under GST.
(iv) General insurance services have been availed from Divided Insurance Company Ltd. registered in
Gujarat.
(v) Works contract services, availed from Chitra Builders, Gujarat, have been used by the company

for construction of a foundation on which machinery to be used in the production process is to be
mounted permanently.
(vi) Audit fee is paid to a firm of Chartered Accountants - M/s Pandya & Associates (registered in
West Bengal with an aggregate turnover of ` 30 crores in the preceding financial year) - for

conducting the statutory audit of the company in the preceding financial year. The firm raises an
e-invoice without IRN (Invoice Reference Number) for said services.
(vii) Bank charges are towards various services availed by the company during a month with regard to
its current account maintained with Manimani Bank, registered in Gujarat. The bank issued a

consolidated tax invoice for all such services at the end of the month containing the details of tax
charged, description of services, total value, GSTIN of the bank and Motopower Pvt. Ltd.
(viii) Automobile Association is registered in the State of Gujarat.
(ix) The breakup of sales is as under:
Sales in Gujarat – ` 14 lakh

Sales in States other than Gujarat – ` 6 lakh
Exports under Letter of Undertaking (LUT) – ` 10 lakh
(x) Car rental income pertains to renting of cars to Jamaze Travels Ltd., registered in Gujarat and cost
of fuel is included in the value of said supply. Further, consumables, procured from registered

suppliers located in Gujarat, include diesel (excise and VAT paid) worth ` 0.75 lakh used for
running the cars so rented out to Jamaze Travels Ltd. Assume that except diesel, no other
input/input services is used in providing car renting service.
(xi) Services provided to Gujarat Government administration are under a Health Training

programme. 51% of the total expenditure for said programme is borne by Gujarat Government.
(xii) The opening balance of ITC with the company for the tax period is:
CGST - ` 0.50 lakh
SGST - ` 0.26 lakh

IGST - ` 0.35 lakh

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