TaxTMI 
TaxTMI 
Inclusion of Amount while determining Transaction Value [ Section 15(2) ]
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....of determination of value of supply under GST, tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character of tax. For Example * Excise duty, * Basic custom duty, * Duty levied by local authorities, * ESI, EPF on contract labour, * Goods transit insurance etc. Clause (b) of section 15(2) - any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both. * Any amount paid by the recipient , which are obligation to pay, shall be included in the value of....
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....eparately for diesel, in addition to fixed monthly charges, for hiring DG set. it was held the consideration for reimbursement of expenses as cost of the diesel for running of the DG Set is nothing but the additional consideration for the renting of DG Set and attracts CGST @ 18%.[M/S. GOODWILL AUTO'S 2021 (8) TMI 355 - AAR, KARNATAKA] * The valuation of taxable services include reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service. [UNION OF INDIA AND ANR. Vs. M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. 2018 (3) TMI 357 - SC ] * The Contractee are recovering the cost of the materials that are u....
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.... the State Electricity Boards or DISCOMs from them, they will be deemed to be acting as pure agent for this supply. For Examples * If the ownership in the goods passes at the destination of buyer, then freight on insurance is liable to be included in the value of supply even if paid by the recipient. * Demurrage charges paid by the purchaser on behalf of supplier shall be included in the value of supply. Clause (c) of section 15(2) - incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of ....
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....ved by the supplier. * Further, since such charges are an addition in the value of supply, same rate of tax as applicable on the main supply of goods / service are applicable on such charges as well. Important Circular & Notification * GST should not be leviable on normal interest payable by recipient as per agreed terms of contract. this is also justifiable from that interest is exempt supply as per Notification No. 12/2017- Central Tax (Rate) dated 28 Jun 2017. * GST on penal interest is charged on EMI clarified in the Circular No. 102/21/2019-GST dated 28 Jun 2019 has been follows:- * If the seller himself grant EMI instalment - In this case if the seller charge penal interest, it will be part of value of goods as....