Final Value of Supply Part1

Wholesale price for 1 MT of cement sold by X Ltd. in the ordinary course of business: Rs. 7,000. Price of 1 MT of cement sold by X Ltd. to unrelated customer Y: Rs. 6,700. Value of supply made by X Ltd. to Y is Rs.___________,

• 7000
• 6700

Grand Biz contracts with ABC Co. to conduct a dealers’ meet. In furtherance of this, Grand Biz contracts with vendors to deliver goods / services, like water, soft drinks, audio system, projector, catering, flowers etc. at the venue on the stipulated dates at the stipulated prices. Grand Biz is liable to make these payments as contracted. The soft drinks supplier wants payment upon delivery; ABC Co. agrees to pay the bill raised by the soft drinks vendor on Grand Biz, on receiving the crates of soft drinks. This amount is not billed by Grand Biz to ABC Co. Whether payment made by ABC Co. to Soft drinks supplier would be added to the value of supply provided by Grand Biz to ABC Co. for payment of GST?

• Yes
• No

The selling price of a Pen is Rs. 50. For pens sold to students in Government schools, a company receives price linked subsidy of Rs. 30 per pen from an NGO, so that the students pay only Rs. 20 per pen. What would be the value of the pen for the purpose of GST computation?

• 50
• 20

The selling price of a Pen is Rs. 50. For pens sold to students in Government schools, a company receives price linked subsidy of Rs. 30 per pen from State Government, so that the students pay only Rs. 20 per pen. What would be the value of the pen for the purpose of GST computation?

• 50
• 30

Royal Biscuit Co. gives a discount of 30% on the list price to its distributors. Thus, for a carton of Spice biscuit, in the tax invoice the list price is mentioned as Rs. 200, on which a discount of 30% is given to arrive at the final price of Rs. 140. The value of supply is ________.

• 200
• 140

Income tax collected at source should be included in value of the supply in terms of section 15(2)(a). Examine the correctness of the statement.

• Correct
• Incorrect

How should the supply made by a component manufacturer be valued, when he uses moulds and dies owned by the original equipment manufacturer sent free of cost to him?

• Includible
• Not Includible

Company offering 20% discount for single purchase above Rs.10,000. What is the treatment of discount for computation of value?

• To be Excluded
• Not to be Excluded

Company offering additional discount of 1% on purchase of 10,000 pieces in a year. What is the treatment of discount for computation of value?

• To be Excluded
• Not to be Excluded

After selling a product, the company re-valued the product at a lower value and issued credit note to the buyer for the differential amount. What is the treatment of discount for computation of value?

• To be Excluded
• Not to be Excluded