A supplier gets a Rs 5,000 private subsidy tied to the price; buyer pays Rs 95,000. Value of supply?
ARs 90,000
BRs 95,000
CRs 97,500
DRs 1,00,000
Answer & Solution
Correct answer: D. Rs 1,00,000
A non-government subsidy directly linked to price is added to the price paid: 95,000 + 5,000 = 1,00,000.
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