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valuation of goods

Bhavleen Kaur Oberoi (Chartered Accountant) (228 Points)

17 June 2017

suppose my customer transfers me a machinery on which he has taken credit of rs.10 lac and I produce 10 lac units of finished product from that machinery. now the cost of the finished product is rs.13 . n credit on machinery per unit of product comes to. Rs.1 per unit . under the existing law the taxable value of the product is rs.13 +1=14. what will be the taxable value under gst?

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2 Replies

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 17 June 2017

Originally posted by : bhavleen
	suppose my customer transfers me a machinery on which he has taken credit of rs.10 lac and I produce 10 lac units of finished product from that machinery. now the cost of the finished product is rs.13 . n credit on machinery per unit of product comes to. Rs.1 per unit . under the existing law the taxable value of the product is rs.13 +1=14. what will be the taxable value under gst?

this is case of "Price is not sole consideration", therefore add Rs1/- P.u. machinery supplied by buyer. Similar provision is in GST law. Pl note that whole valuation concept is not similar but the question you rasied is similar in GST and old excise act.