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Rule 28 (supplies between distinct/related persons) provides that value shall be:
AAlways open market value
BAlways nil
CAlways 110% of cost
DOpen market value; if not available — value of supply of like kind and quality; if not — Rule 30 (110% cost)
Answer & Solution
Correct answer: D. Open market value; if not available — value of supply of like kind and quality; if not — Rule 30 (110% cost)
1. Rule 28(a) — open market value of the supply.
2. Rule 28(b) — if (a) is not available, value of supply of like kind and quality.
3. Rule 28(c) — if (a) and (b) fail, the value determined by Rule 30 or Rule 31 in that order.
4. Second proviso: if recipient is eligible for full ITC, invoice value is deemed open market value.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Rule 28_
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