M/s Basu & Co., an Audit Firm based in Kolkata undertake an Audit assignment of a Mumbai based client. The contract with the client includes ₹5,00,000 as audit fee and arrangement of taxi for movement of auditors amo
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2018
M/s Basu & Co., an Audit Firm based in Kolkata undertake an Audit assignment of a Mumbai based client. The contract with the client includes ₹5,00,000 as audit fee and arrangement of taxi for movement of auditors amounting to ₹15,000 actually spent by the auditors and reimbursed by the client. Find out the transaction value in the hands of M/s Basu & Co.
Answer & Explanation:
As per section 15(2)(b) the value of supply shall include any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both. Therefore, transaction value in the hands of M/s Basu & Co. is ₹5,15,000.
Topics: Central Goods and Services Tax Act, 2017
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