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Value of supply

In This problem subsidy received from the state government is deducted from the price of the machine .why ? Can wesimply write as nil instead of deduction?

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Banda Veeresh

Banda Veeresh

CA Inter

35K+

19-Jan-21 12:43

11

Answers (3)

23 rd problem


Banda Veeresh

Banda Veeresh

CA Inter

35K+

19-Jan-21 12:43

Section 15(2)(e): Subsidies # By Central/State Govt. -> Lower price after subsidy is the value [Subsidy received from Govt. is not included in the transaction as it is merely a valuation adjustment for computation of tax payable and not a supply] # Other than Central/State Govt. -> Subsidy is added to the value of supply and it does not lower the value -> supplier who receives the subsidy -> only subsidies directly linked to the price of goods/services


Deepak Gupta

Deepak Gupta

CA Inter

760

19-Jan-21 13:18

Perfect ð???


Shiva Teja

Shiva Teja

Faculty

19-Jan-21 17:45