Page 6 - Ch5_Value of Supply
P. 6
Answer:
Legal Provision:-
As per section 15(2)(c) of the CGST Act, the value of supply includes:-
Ø incidental expenses, including commission and packing, charged by supplier to recipient &
Ø any amount charged for anything done by the supplier in respect of the supply until delivery of goods or
supply of services.
Discussion & Conclusion:-
Ü In the given case, the showroom is not charging any amount towards freight from Ms. Leena but incurring
the same out of its own pocket.
Ü Thus, the same shall not be added to value & the value of supply will be ` 2,00,000 in this case.
Ü However, the answer will change in the second case when the showroom will charge ` 300 for freight
[(50km – 20 km) x ` 10] from Ms. Leena.
Ü In this second case, the supply will be a composite supply where the principal supply being the supply of
furniture and value thereof will be ` 2,00,300.
Sec 15(2)(d): Interest, late fee or penalty for delayed payment of consideration
CCP 05.01.06.00
CCP 05.01.07.00
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