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Rule 34 — rate of exchange for value of supply (where consideration is in foreign currency) shall be the reference rate published by:
ARBI
BGBP-INR average from SBI
CCustoms Notification rate for assessable value
DImporter's bank rate
Answer & Solution
Correct answer: C. Customs Notification rate for assessable value
1. Rule 34(1) — for goods: rate of exchange = rate notified by the Board (under Sec 14 of the Customs Act) for determining the assessable value of the imported/exported goods.
2. Rule 34(2) — for services: rate of exchange = the GAAP-adopted reference rate as on the date of time of supply (typically RBI reference rate or any rate per AS-11 / Ind AS 21).
3. The question references the goods scenario where Customs notification rate applies.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Rule 34_
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