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Sec 15(2)(c) includes commission and packing charged by the supplier. ABC Ltd sells goods for Rs 1 lakh and charges Rs 5,000 packing + Rs 3,000 freight (supplier's liability). Value of supply (excluding GST):
ARs 1,00,000
BRs 1,05,000
CRs 95,000
DRs 1,08,000
Answer & Solution
Correct answer: D. Rs 1,08,000
1. Base price = Rs 1,00,000.
2. Packing of Rs 5,000 and freight of Rs 3,000 (incurred by supplier as part of his obligation) are both incidental expenses includible under Sec 15(2)(c).
3. Value = 1,00,000 + 5,000 + 3,000 = Rs 1,08,000.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Sec 15(2)(c)_
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