TaxTMI 
TaxTMI 
2019 (11) TMI 223
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....eir products. The Principal Company's software is mandatory to all distributors and only through, that software any distributor could conduct further supply of the products. The Principal Company is having various rate scheme with dealers. As the Principal Company is having sole control over the billing software, the distributors or dealers can supply any goods of the company only through this software. The Principal Company is issuing invoices at a price to its distributors and the distributors supplying the goods to the dealers issue invoice based on the various rate scheme pre-fixed by the Principal Company. While the distributor generate invoice to dealers through the software designed by the Principal company, the invoice value of ....
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....de and invoice pricing is on the basis of the Master software system being controlled by the Principal Company and the distributors has no control on it. The modus operandi of the distribution of products is explained with an example as shown below. The agent of M/s. Castrol India Lid, at Palakkad issued an invoice to the applicant for a product with code No, 3380747 MGO OW20 210L with taxable value of Rs,58,083/- and collected 18% GST of Rs. 10,455/-. The distributor subsequently raise invoice showing sale value including his margin to Rs. 61,152/-, From this value deducted scheme discount/rebate of Rs. 31,920/- and taxable value arrived to Rs. 29,232/- and collected 18% GST being Rs. 5,262/-. The scheme discount provided by the applica....
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....omers as Identified / determined by the supplier of goods / principal company. As submitted by the applicant; the applicant has no control either on the quantum of scheme discount to be offered or on the category of customers to whom the scheme discounts are to be offered. The discounts so offered as per instructions of the supplier of goods / principal company are completely reimbursed by the supplier of goods / principal company. In the facts of the instant case, the additional discount / reimbursed amount represents the consideration flowing from the supplier of goods / principal company to the applicant for the supply made by the applicant to the customers. The additional discount / reimbursed amount; is therefore liable to be added to ....
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....nt; which is reimbursed to the applicant is to offer a special reduced price by the distributor / applicant to the customers and hence the amount represent consideration paid by the supplier of goods / principal company to the distributor / applicant for supply of goods by the distributor / applicant to the customer. Therefore, this additional discount reimbursed by the supplier of goods / principal company to the distributor / applicant is liable to be added to the consideration payable by the customer to the distributor / applicant to arrive at the value of supply under Section 15 of the CGST / SGST Act at the hands of the distributor / applicant. iii) Whether the amount shown in the Commercial Credit note issued to the applicant....