Forums

Value of Supply

Indirect Taxation

'The list price of the goods takes into account the two subsidies received ' Can you explain the meaning and treatment of it.Iam unable to understand

e8797bf4-2374-429e-b471-fcbd272ff641.jpg

Shankari C

Shankari C

CA Inter

12K+

06-Aug-22 18:32

231

Answers (9)

Best Answer

List price already adjusted with two subisdies i.e. â?¹15,00,000 is after adjusted with central govt. Subsidy of â?¹2,10,000 and ngo subsidy of â?¹50,000 Just we have to ignore central govt. Subsidy it already deducted (allowed u/s 15) Add back ngo subsidy â?¹50,000 (which is not allowed as exclusion u/s 15)


Prakash Murugan

Prakash Murugan

CA Inter

710

06-Aug-22 19:03

Is it correct? Check with your solution and say

5445730b-175a-4fc8-95c4-f339c116d1be.jpg

Prakash Murugan

Prakash Murugan

CA Inter

710

06-Aug-22 19:07

Prakash Murugan

Is it correct? Check with your solution and say

I don't have doubt with the answer .I just want to know that they have mentioned list price includes subsidies.What does that mean??Is Rs.15 Lakhs is inclusive of 2.1 lakhs+50k because that is what I understand from the question.If anyone has more clarity,tell me


Thread Starter

Shankari C

Shankari C

CA Inter

12K+

06-Aug-22 20:38

Thread Starter

Shankari C

I don't have doubt with the answer .I just want to know that they have mentioned list price includes subsidies.What does that mean??Is Rs.15 Lakhs is inclusive of 2.1 lakhs+50k because that is what I understand from the question.If anyone has more clarity,tell me

It means the subsidy recieved from NGO and Government are already excluded from the List price. So the treatment will be , we add back only NGO subsidy to list price i.e. 50k


Manav Dixit

Manav Dixit

CA Final

2K+

06-Aug-22 21:06

No man the answer is not correct List price. :. 1,50,000 Govt subsidy:. Nil NGO subsidy:. 50,000 Tax by muni. :. 20,000 Packing charges:. 15,000 Late fee:. 5,085 (6000*100/118) Value of taxable supply. :15,90,085


Manav Dixit

Manav Dixit

CA Final

2K+

06-Aug-22 21:09

Manav Dixit

It means the subsidy recieved from NGO and Government are already excluded from the List price. So the treatment will be , we add back only NGO subsidy to list price i.e. 50k

Means the list price will take into account the subsidy? Is it like HINT ?


Thread Starter

Shankari C

Shankari C

CA Inter

12K+

06-Aug-22 23:20

Thread Starter

Shankari C

Means the list price will take into account the subsidy? Is it like HINT ?

Yes it is a hint that subsides are already adjusted ( excluded)with the price


Manav Dixit

Manav Dixit

CA Final

2K+

06-Aug-22 23:21

Manav Dixit

Yes it is a hint that subsides are already adjusted ( excluded)with the price

Ok thanks


Thread Starter

Shankari C

Shankari C

CA Inter

12K+

07-Aug-22 13:15

CFA Webinar
ibs launch
Tally + Excel Free