VVIP Global Limited registered supplier of Maharashtra has provided the following details for the supply of one machine: S. No. Particulars Amount (₹) 1 List price of Machine supplied 1,20,000 2 Cost of protective Packin

CS Executive · Tax Laws and Practice · PYQS · December 2024
VVIP Global Limited registered supplier of Maharashtra has provided the following details for the supply of one machine: S. No. Particulars Amount (₹) 1 List price of Machine supplied 1,20,000 2 Cost of protective Packing for safe transportation of machine charged separately in the invoice 15,000 3 Maintenance Charges compulsory for first year (not included in above list price) 20,000 4 Installation charges of machinery (not included in above list price) 2,500 5 Third party Inspection charges (these charges are not recorded in the invoice; these charges are directly paid by buyer to third party inspection agency) 4,000 6 Price link subsidy received from Government of Maharashtra in relation to Supply of such machinery (The price of ₹1,20,000 above is after considering the subsidy of ₹30,000) 30,000 7 Tax Levied by Local Authority on sale of such machine (not included in above list price) 3,500 During the month of March, 2024 VVIP Global Limited supplied three machines in the state of Maharashtra and one machine in the state of Gujarat to the registered dealers. The aggregate annual turnover of the company during the financial year 2022-23 was ₹8 crore. However aggregate annual turnover of current financial year 2023-24 was ₹4 crore only. VVIP Global Limited also purchased some machines from registered dealer as well as unregistered dealer during the month of March, 2024. The details of inward supplies during the month of March, 2024 were as follows: S. No. Particulars Amount (₹) 1 Two Machines purchased from a Dealer who is registered under Regular Scheme in the state of Uttar Pradesh (each machine value ₹75,000) 1,50,000 2 One Machine purchased from a Dealer who is registered under Composition Scheme in the state of Maharashtra 76,000 3 One Machine purchased from Moon Limited registered under Regular Scheme in the state of Gujrat (Invoice is received and payment is made in the month of March, 2024 but Machine is received in the month of April, 2024) 68,000 4 Insurance charges paid to XYZ Insurance Company registered in Pune (Maharashtra) for trucks used for transportation of Machinery for two years (Insurance Premium ₹60,000 per year) 1,20,000 Balance available in electronic credit ledger of VVIP Global Limited at the beginning of March, 2024: CGST ₹15,000 SGST ₹10,000 IGST ₹5,000 Additional Information: (1) On 26 March, 2024 Moon Limited transported above mentioned one machine to VVIP Global Limited by road, the distance between registered places of business from Moon Limited to VVIP Global Limited is 375 kilometers. (2) Rate of CGST, SGST and IGST to be charged 9%, 9% and 18% respectively. (3) Both inward and outward supplies given above are exclusive of taxes, wherever applicable. (4) All the conditions necessary are availing the ITC have been fulfilled except mentioned above. Based on the above case scenario and information, you are required to compute the Taxable Value of Supply of each machine for the month of March, 2024 for VVIP Global Limited.

Answer & Explanation:

Computation of Taxable Value of Supply Particulars Amount (₹) List price of Machine supplied 1,20,000 Cost of protective Packing for safe transportation of machine charged separately in the Invoice (Included in Value of supply as per section 15) 15,000 Maintenance Charges (Included in Value of supply as per section 15) 20,000 Installation charges of machinery (Included in Value of supply as per section 15) 2,500 Third party Inspection charges (Included in Value of supply as per section 15) 4,000 Subsidy received from State Government in relation to supply of such machinery. (Subsidy from State Govt. or Central Govt., are not includible in the value of supply u/s 15) Tax Levied by Local Authority on sale of such machine (Tax other than GST, if charged separately, are includible in the value in terms of section 15) 3,500 Value of taxable supply 1,65,000

Topics: GST

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