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Supply 7 1 a query on the word exchange

Indirect Taxation

Sir, as part of Supply definition, you took 1 example while explaining difference between Exchange and Barter. Here my Query is that, exchanging I PHONE with 1 plus 5 mobile. What I PHONE store guy will do with 1 plus 5 mobile? This transaction is not meeting the criteria of furthence of business. Sir, instead can we use the word old i phone used as exchange? Please shed more light on this and propel me to a write concept

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

05-Sep-20 19:35

367

Answers (6)

The store guy is also giving his new phone in exchange of old phone. Thatâ??s in the course or furtherance of business. The value of old phone will be the consideration for new phone.

Shiva Teja

Faculty

06-Sep-20 11:15

Sir, my query is on the word "exchange". Will it happen exchange with 2 different products? Exchanging 1plus 5 mobile with i PHONE, which you explained in the video. If i PHONE store accepts 1 plus 5 mobile for exchange, what i PHONE store guy will do with one plus 5 mobile? 1 plus 5 mobile will not result in Furtherance of business for I phone? Untill now i have noticed like the same old phone from the same company can be exchanged but not with other company. Are there any instances as such did u come across? If so, share me the realtime example on this.

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

06-Sep-20 12:01

In the course of business is selling iphones and taking old i phone and exchange with new i phone will result in increase in i phone sales count there by we can say furtherance of business. Here, in the video you took example with 1 plus 5 mobile with I phone, here still i am not clear how this kind of transactions go through........

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

06-Sep-20 12:06

Thread Starter

ILLURU VISWESHWARA REDDY

Practically iPhone store will not accept one plus. But if you check on Amazon or Flipkart then do accept any old phone. So basically consideration is received by iPhone people through kind.

Shiva Teja

Faculty

06-Sep-20 14:32

K Sir. Got it. Because on the video, you have used the word "i phone store", there i got a doubt. In Amazon point of view, it makes sense. As per GST, Amazon nature of business discussed under E commerce operator.

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

06-Sep-20 17:51

As per your explanation, here consideration in kind accepting and receiving by Amazon not i phone? because later they do some fine tweakings or refurbishment and sell. i phone store no where come in to picture.

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

06-Sep-20 18:07