The
value of supply shall be the transaction value, which is the price actually
paid or payable where the supplier & the recipient are not related. Price
includes:
►
Any taxes, duties, cesses, charges levied under any law other than the GST Acts
if charged separately
►
Any amount
that the supplier
is liable to pay but which has been
incurred by the recipient & not included in the consideration
►
Incidental expenses & any
amount charged for anything done by the supplier at the time of or before
delivery of supplies
►
Interest, late fee, penalty
for delayed payment of consideration
►
Subsidies directly linked to
the price except subsidies provided by the Central & State Governments
The
value of the supply shall exclude discount
which is given:
►
before or
at the time of the supply if such discount
has been recorded
in the invoice
►
after time
of supply, if discount
is in terms of an agreement,
specifically linked to relevant invoices & ITC attributable to the
discount has been reversed by the recipient
Explanation:
For the purposes of this Act,–
(a)
persons shall be deemed to be “related persons” if––
(i)
such persons are officers
or directors of one another’s businesses;
(ii)
such persons are legally recognised partners in business;
(iii)
such persons are employer
and employee;
(iv)
any person directly or indirectly owns, controls or holds 25% or
more of the outstanding voting stock or shares of both of them;
(v)
one of them directly or indirectly controls the other;
(vi)
both of them are directly or indirectly controlled by a third person;
(vii)
together they directly or indirectly control a third person; or
(viii)
they are members
of the same family;
(b)
the term “person” also includes legal persons;
(c)
persons who are associated in the business of one another in that one is the
sole agent or
sole distributor or sole concessionaire of the
other, shall be deemed to be related.
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