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Subsidy received by a supplier directly linked to the price of supply is:
AAlways excluded from value
BIncluded only if non-monetary
CAlways included
DIncluded in value of supply unless from Central/State Government
Answer & Solution
Correct answer: D. Included in value of supply unless from Central/State Government
1. Sec 15(2)(e) — subsidies directly linked to the price are included in the value of supply.
2. However, subsidies provided by the Central Government and State Governments are EXCLUDED.
3. Subsidy must be 'directly linked to the price' — general fiscal subsidies are outside this.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Sec 15(2)(e)_
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