Home › CA Final › indirecttaxlaws › Value of Supply › Rule 30 (cost-based valuation) prescribes value …
Rule 30 (cost-based valuation) prescribes value as:
A110% of cost of production/manufacture/acquisition/provision of services
B100% of cost
C120% of cost
D150% of cost
Answer & Solution
Correct answer: A. 110% of cost of production/manufacture/acquisition/provision of services
1. Rule 30 applies when value cannot be determined under Rules 27, 28 or 29.
2. Value = 110% of cost of production or manufacture of goods, or cost of acquisition of goods, or cost of provision of services.
3. If cost-based still not possible, Rule 31 (residual best-judgment) is the last resort.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Rule 30_
Related questions
ABC Ltd offers a buy-two-get-one-free scheme on shirts. The 3 shirts are sold for the pricRule 32 — value in case of supply of foreign currency from one Indian rupee to another andRule 28 (supplies between distinct/related persons) provides that value shall be:Rule 34 — rate of exchange for value of supply (where consideration is in foreign currencyRule 29 covers supply of goods made through an AGENT. Value is:Where a registered second-hand goods dealer makes the supply of used goods and HAS NOT avaDiscount of 2% offered to a customer for payment within 7 days of invoice is recorded ON tRule 32(3) — air travel agent — value of supply of services on supply of services in relat