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UNIT - 2Concept of SupplyQ1) What do you mean by taxable event under GST?A1) Taxable event: Taxable event is very important matter in every tax law. Its determination is most crucial for the proper implementation of any tax law. Taxable event is that on the happening of which the charge is fixed. It is that event which on its occurrence creates or attracts the liability to tax.In the history of indirect taxation in India we have seen different taxable events in different indirect taxes. Sales purchase, and removal of goods, services, luxury, and entertainment and so on, the list goes on. GST i.e. goods and service tax which we are going to witness will not only reform the whole of indirect taxes but also will reform the way of doing business in India.Taxable event under GST: One of the very important features of the regime of GST is the complete change in the taxable event different altogether from the taxable events witnessed in the indirect taxes as yet. The taxable event in the GST would be supply of goods and/or services. As per Article 366(1A) of Constitution of India Goods and Services Tax means a tax on supply of goods or services or both except taxes on supply of alcoholic liquor for human consumption. It is worth noting here that the word used is supply and not sales, hence consideration is not required for supply.Q2) Define supply under GST.A2) Definition of supply: The term supply has been defined in an inclusive manner under clause 3 of the revised Model GST Law.The definition goes as follows:(1) Supply includes—(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, (b) Importation of services, for a consideration whether or not in the course or furtherance of business, and (c) a supply specified in Schedule I, made or agreed to be made without a consideration.(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.(3) Notwithstanding anything contained in sub-section (1),(a) activities or transactions specified in schedule III; or(b) activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities as specified in Schedule IV, shall be treated neither as a supply of goods nor a supply of services.(4) Subject to sub-section (2) and sub-section (3), the Central or a State Government may, upon recommendation of the Council, specify, by notification, the transactions that are to be treated as— (a) a supply of goods and not as a supply of services; or(b) a supply of services and not as a supply of goods; or(c) neither a supply of goods nor a supply of services.(5) The tax liability on a composite or a mixed supply shall be determined in the following manner —(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply;(b) a mixed supply comprising two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax.Inclusive definition of supply: From the above clause 3 it is clear that the term supply has not been defined exhaustively rather it has been defined in an inclusive manner. It must be remembered that when the word “includes” is used in the definition, the legislature does not intend to restrict the definition. it makes the definition enumerative but not exhaustive. That is to say, the term defined will retain its ordinary meaning but its scope would be extended to bring within it matters, which in its ordinary meaning may or may not comprise.Thus the term supply would include within its ambit not only the matters covered under clause 3 but also other matters which may be included by natural import.Supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental , lease or disposal made or agreed to be made for a consideration by a person in the cource or furtherance of business. The important thing to be noted here is the use of word consideration and in the cource or furtherance of business.However, certain matters have also been termed as supply even without consideration as mentioned under schedule I of the revised model GST law. Such transactions are:(a) permanent transfer/disposal of business assets where input tax credit has been availed on such assets. (b) Supply of goods or services between related persons, or between distinct persons as specified in section 10, when made in the cource or furtherance of business.(c) Supply of goods by principal to agent(Branch Transfers). Supply of goods by agent to principal (cases of inter-state purchases covered), Scope of SC judgement in Bakhtawar Lal Kailash Chand Areti curtailed.Import of service: Supply also includes specifically the import of service for a consideration whether or not in the course or furtherance of business. However, Import of services by a taxable person from related person or from any of his other establishments outside India, in the course or furtherance of business has been made taxable even without consideration.Supply of goods vs Supply of services: Further certain matters have been separately explained to be treated as supply of goods and certain to be supply of services under schedule II of the Model GST Law. This has been done considering the past litigations on the issue of double taxation like in works contract AC restaurants, intangible goods, transfer of right to use goods etc. Matters to be treated as supply of goods:(a) Any transfer of title in goods(b) Any transfer of title in future goods under an agreement (hire purchase)(c) Transfer of goods forming part of assets on the directions of a person carrying on business, in such a way so as not to form part of business assets with or without consideration(d) Goods forming part of business assets on ceasing to be a taxable person except when business is transferred as going concern to another person or business is carried on by a personal representative deemed to be a taxable person.(e) Supply of goods by any unincorporated association to a member thereof for cash, deferred payment or other valuable consideration (Concept of mutuality seem to be covered as well). Matters to be treated as supply of services:(a) Any transfer of right in goods or undivided share in goods(transfer of right to use is a service)(b) Any lease, tenancy, easement, licence to occupy land, lease or letting out of building including commercial, industrial or residential complex (renting of immovable property is supply of service)(c) Job work on other’s goods(d) Business goods put to private use or making available to any person for non-commercial purpose(e) Renting of immovable property(f) Construction of a commercial complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier(g) Transfer of IPRs(h) development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software;(i) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;2(j) works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;(k) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;(l) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.(restaurant service). There are certain activities which shall be neither service of goods nor supply of services, such transactions are mentioned under schedule III.1. Services by an employee to the employer in the course of or in relation to his employment.2. Services by any Court or Tribunal established under any law for the time being in force.3. (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;(b) The duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (c) The duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.4. Services by a foreign diplomatic mission located in India.5. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.Similarly certain activities undertaken by Central or State Government or any local authority as specified in schedule IV shall be neither supply of services nor of goods. Schedule IV provides exhaustive list of activities such as issuance of passport, visa, driving licence, birth and death certificates etc.Apart from above section 3(4) provides that the central or state government may on recommendation of GST Council, specify by notification, the transactions that are to be treated as-(a) a supply of goods and not as a supply of services; or(b) a supply of services and not as a supply of goods; or(c) neither a supply of goods nor a supply of services.Taxability of Mixed and composite supplies: Revised Model GST Law has also provided under clause 3(5) provisions for taxability of composite and mixed supplies as follows:(a) a composite supply comprising two or more supplies, one of which is a principal sully, shall be treated as a supply of such principal supply. Example Supply of food during the course of transportation of passengers by air services shall be treated as supply of transportation of passengers by air.(b) a mixed supply two or more supplies shall be treated as supply of that particular supply which attracts the highest rate of tax.Q3) Discuss the place of supply of goods other import and export.A3) Place of supply of goods other than supply of goods imported into or exported from India [Section 10 of IGST Act, 2017]:

Section	Nature of Transaction	Place of Supply
The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under:
10(1) (a)	Where the supply involves MOVEMENT OF GOODS, whether by the supplier or by the recipient or by any other person,	Location of the goods at the time at which the movement of goods terminated for delivery to the recipient. Note: Thus, irrespective of the number of states the goods pass through during the course of its journey, the state in which the movement of goods terminates for delivery to the recipient is the place of supply of goods.
10(1) (b)	Where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of document of title to the goods or otherwise,	 It shall be deemed that the said third person shall received the goods; and  The place of supply of such goods shall be the principal place business of such person.
10(1) (c)	Where the supply does not involve movement of goods, whether by the supplier or the recipient,	Location of such goods at the time of the delivery to the recipient.
10(1) (d)	Where the goods are assembled or installed at site,	Place of such installation or assembly.
10(1) (e)	Where the goods are supplier on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle.	Location at which such goods are taken on board.
10 (2)	Where the place of supply of goods cannot be determined	Shall be determined in such manner as may be prescribed.

Q4) Discuss provisions regarding place of supply of services where supplier and recipient are both from India.A4) Place of supply of services where location of supplier and recipient is in India [Section 12 of the IGST Act, 2017]:

Section	Nature of Transaction	Place of Supply
12 (1)	Determine of the place of supply of services where the location of supplier of services and the location of the recipient of services is in India.
12 (2)	General Provisions: The place of supply of services
	a) made to a registered person b) made to any person other than a registered person- i) where the address on record exists; ii) in other cases	Location of such person; i) The location of the recipient ii) The location of the supplier of service
12 (3)	Services provided in relation to immovable property:
	Service: a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of right to use immovable property or for carrying out or co-ordination of construction work; or b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any vessel or c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or d) any services ancillary to the services referred to in clause (a), (b) and (c),	Location at which the immovable property or boat or vessel, as the case may be is located or intended to be located.
	If the location of the immovable property or boat or vessel is located or intended to be located outside India.	Location of the recipient
	Where the immovable property or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
12 (4)	Restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery	Location where the services are actually performed.
12 (5)	Services in relation to training and performance appraisal to:
	a) a registered person,	Location of such person;
	b) a person other than a registered person,	Location where the services are actually performed
12 (6)	Services provided by way of admission to a cultural, artistic, sporting, scientific, educational, entertainment event or amusement park or any other place and services ancillary thereto,	Place where the event is actually held or where the park or such other place is located.
12 (7)	Services provided by way of:
	a) organisation of a cultural, artistic, sporting, scientific, educational, entertainment event including supply or services in relation to a conference, fair, exhibition, celebration or similar events; or b) services ancillary to organisation of any of the events or services referred to in clause (a), or assigning of sponsorship to such event,- i) to a registered person ii) to a person other than a registered person, i) If event is held in India. ii) If event is held outside India.	Location of such person; i) Place where event is actually held. ii) Location of the recipient.
	Where the event is held in more than one State or Union territory and a consolidated amount is charged for supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement, entered into in this regard or, in the absence of such contract or agreement on such basis as may be prescribed.
12 (8)	Services by way of transportation of goods, including by mail or courier to:
	a) a registered person,	Location of such person;
	b) a person other than a registered person,	Location at which such goods are handed over for their transportation.
12 (9)	Passenger transportation service to:
	a) a registered person,	Location of such person;
	b) a person other than a registered person, Where the right to passage is given for future use and the point of embarkation is not known at the time is issue of right to passage, a) made to a registered person. b) made to any person other than a registered person i) where the address on record exists, ii) in other cases.	Place where the passenger embarks on the conveyance for a continuous journey. a) Location of such person. i) the location of the recipient. ii) the location of the supplier of services.
	Return journey to be treated as a separate journey (Explanation): The return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.
12 (10)	Services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle.	Location of the first scheduled point of departure of that conveyance for the journey.
12 (11)	Telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall,
	a) in case of services by way of fixed telecommunication line, leased circuits, internet leased circuit, cable or dish antenna.	Location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services.
	Where the leased circuit is installed in more than one state or union territory and a consolidated amount is charged for supply of services relation to such circuit, the place of supply of such services shall be taken as being in each of the respective state or union territories in proportion to the value for services separately collected or determined terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed.
	b) in case of mobile connection for telecommunication and internet services provided on – paid basis,	Location of billing address of the recipient of services on the record of the supplier services;
	c) in cases where mobile connection for telecommunication, internet service for direct to home television services are provided on pre-payment basis through a voucher or any other means- i) through a selling agent or a reseller or a distributor of subscriber identity module card or recharge voucher, ii) by any person to the final subscriber. If such prepaid service is availed or the recharge is made through internet banking or other electronic mode of payment,	Address of the selling agent or reseller or distributor as per the record of the supplier at the time of supply; or Location where such prepayment is received or such vouchers are sold; Location of the recipient of services on the record of supplier of service
	d) In other cases, i) If address of the recipient as per the records of the supplier of services is available ii) where such address is not available	Address of the recipient as per the records of the supplier of services and Place of supply shall be location of the supplier of services.
	Where the address of the recipient as per the records of the supplier of services is not available, the place of supply shall be the location of the supplier of services.
12 (12)	Banking and other financial services, including stock broking services to any person	Location of the recipient of services on the records of the supplier of services:
	If the location of recipient of services is not on the records of the supplier,	Location of the supplier of services;
12 (13)	Insurance services; a) to a registered person, b) to a person other than a registered person	Location of such person; Location of the recipient of services on the records of the supplier of services.
12 (14)	Advertisement service to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contract or agreement.	a) Place of supply shall be taken as being in each of such States or Union territories. b) Value of such supplies specific to each State or Union territory shall be in proportion to: i) amount attributable to services provided by way of dissemination in the respective State or Union territories as may be determined in terms of the contract or agreement entered into n this regard or, ii) in the absence of such contract or agreement, on such other basis as may be prescribed.

Q5) Write a note on time of supply of goods.A5) Time of Supply of Normal Goods:1.] Liability for Payment of Tax Arises at Time of Supply [Section 12 (1)]: The liability to pay tax on goods shall arise at the time of supply as determined in accordance with the provision of this section.2.] Time of Supply Goods – Forward Charge i.e. Normal Supply of Goods [Section 12 (2)]: The time of supply of goods shall be the earlier of the following dates:a) i) The date of issue of invoice by the supplier; or ii) The last date on which he is required, under section 31(1) to issue the invoice with respect to the supply; orb) The date on which the supplier receives the payment with respect to the supply time limit to issue invoice u/s 31(1) is as follows: i) Where supply involves movement of goods – removal of goods for supply to recipient ii) In any other case – delivery of goods or making available thereofc) In case of continues supply of goods i) Where successive statements of account are issued at the time each such statement is issued ii) Where successive payment are involved – each such payment is receivedd) In case of goods sent on approval i) Before or at the time of supply ii) 6 months form data of removal Whichever i) or ii) is earlier. 3.] Small Advance Upto

1,000: Where the supplier of taxable goods receives an amount upto

1,000 in excess of the amount indicated in the tax invoice the time of supply to the extent of such excess amount shall at the option of the said supplier, be the date of issue of invoice in respect of such excess amount i.e. date of invoice to be time of supply. 4.] Thus, supply shall be deemed to be made to the extent covered by invoice or payment for point 2(a) and 2 (b) 5.] For the Purpose of Determination of Date When Supplier Receives Payment Under Point 2(b) shall be: a) The date on which payment is entered in the books of accountb) The date on which payment is credited to his bank account (i) or (ii) whichever is earlier, thus time of supply of goods U/s 12 shall be the earliest of the following dates: i) The data of issue of invoice by the supplier or ii) The last date on which he is required, U/s 31(1) to issue the invoice with respect to the supply, or iii) The date on which the supplier receives the payment with respect to the supply 6.] Time of Supply of Goods for Supplier Taxed Under Reserve Charge Mechanism Section 12(3): The time of supply shall be the earliest of the following dates: the data of the receipt of good; or1.] a) the data of payment as entered in the in the book of amount of the recipient: or b) the data on which the payment is debited in his book amount, whichever is earlier; or c) the date immediately following 30 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.2.] if time of supply cannot be determined as above : it shall be the data of entry in the books of account of recipient of supply 7.] Time of Supply in Case or Supply of Vouchers in Respect of Good Section 12(4):1.] Voucher [(Section 2(1180)]: ‘Voucher’ mean an instrument where there as an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the good of service or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument. 2.] Time of Supply in Case of Supply of Vouchers in Respect of Goods [Section 12(4)]: In case of supply of vouchers by a supplier the time of supply shall be:a) the date of issue of voucher, if the supply is identifiable at the point; orb) the date of redemption of voucher in all other cases. 8.] Time of Supply in Other Cases: Section 12 (5): Time of Supply in Other Cases Due Date of Return or Date of Payment of Tax [Section 12 (5)]: Where it is not possible to determine the time of supply as per above provisions the time of supply shall:a) in a case where a periodical return has to be filed , be the date on which such return is to be filed; orb) in any other case be the date on which the tax is paid. Additional in value by way of interest, late fee or penalty for delayed payment of any consideration Section 12 (6). Time of Supply for Additional Value is Date of Receipt of Additional Amount [Section 12(6)]: The time of supply to the extent it relates to an additional in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. In other words the receipts of payment of these amounts are essential to attract levy of tax.Q6) Write a note on time of supply of services.A6) Section 13(2) Determination of time of supply. The time of supply of service shall be the earliest of the following dates:a) Invoice Issued Within Prescribed Period: Section 13(2) (a) i) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under section 31(2); or ii) the date of receipt of payment Whichever is Earlier: In the above case the time limit for issue of invoice is as follows: i) Taxable Supply of Service: Time limit is 30 days from date of supply of services. ii) Insurance, Bank, Etc: Time limit is 45 days from date of supply of services. iii)In case of continuous supply of service

Event		Time Limit
1)	Where the due date of payment is ascertainable form the contract.	1)	The invoice shall be issue on or before the due date of payment.
2)	Where the due date of payment is not ascertainable form the contract.	2)	The invoice shall be issued before or at the time when the supplier or service receiver the payment.
3)	Where the payment is linked to the completion of an event.	3)	The invoice shall be issued on or before the date of completion of that event.

b) Invoice is Not Issued Within Prescribed Period Section 13(2) (b) i) The date of provision of services, if the invoice is not issued within the period prescribed under section 31(2); or ii) The date of receipt of payment whichever is earlier c) Cases Not Covered U/s 13(d) (a)& 13(2)(b) above The date on which the recipient shows the receipt services in his books of account, in a case where the provision of clause (a) or clause (b) do not supply. Small Advance Upto

1,000: Where the supplier of taxable services an amount upto

1,000 in excess of the amount indicates in the invoice the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount. For the purpose of clauses (a) and (b):1.] Deemed Supply: Means the supply shall be deemed to have been made to the extract it is covered by the invoice or as the case may be the payment. 2.] Date of Receipt of Payment: ‘Date of receipt of payment” shall be:a) The date on which the payment is entered in the books of account of the supplier, orb) he date on which the payment is credited to his bank account. whichever is earlier Time of Supply or Service Under Reverse Charge Basis Section 13 (3):1.] Time of Supply in Normal Cases: In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis the time of supply shall be the earlier of the following dates, namely:a) i) The date of payment as entered in the books of account of the recipient; or ii) The date on which payment is debited in his bank account, whichever is earlierb) The date immediately following 60 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier. Thus, time of supply would be date of payment or the date immediately following 60 days from the date of issue of invoice, whichever is earlier. 2.] Time Supply In Any Other Case: Where It is not possible to determine the time of supply as per above provision the time of supply shall be the date of entry in the books of account of the recipient of supply. 3.] Time of Supply in Case of Associated Enterprises: In case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be:a) The date of entry in the books of account of the recipient of supply; orb) the date of payment, whichever is earlier Here, Associated Enterprise [Section 2(12)]: “Associated enterprises” shall have the same meaning as assigned to it in Section 92A of the Income Tax Act, 1961. Time of Supply in Case of Vouchers for Service [Section 13(4)]: In case of supply of vouchers by a supplier the time of supply shall be:1.] The date of issue of voucher, if the supply is identifiable at the point; or2.] the date of redemption of voucher , in all other case Determination of Time of Supply in Other Cases [Section 13(5)]: Where it is not possible to determine the time of supply as per above provisions, the time of supply shall:1.] In a case where a periodical return has to be filed, be the date on which such return is to be filed; or2.] in any other case, be date on which the tax is paid Time of Supply Due to Addition in Value of Supply by way of Interest, Late Fee, Penalty or Delayed Payment of Consideration for Services Section 13(6): The time of supply to the extent it relates to an addition in the value of supply by way of interest , late fee or penalty or delayed payment of consideration shall be the date which the supplier receives such addition in value.Q7) Discuss the determination of value of supply in normal cases.A7) Value of supply in common terms is nothing but the amount paid by the recipient or supply to the supplier as consideration for supply. Value of supply is the amount upon which tax is levied and collected. The understanding of value of supply is required to be ascertained for correct levy or taxes. Determination of Value of Supply in normal cases (Section 15)

Cost of supply	X
Add:
All Incidental Expenses related to such supply	X
Expenses paid by Recipient on Behalf of Supplier	X
Any late payment charges such as interest/penalty	X
Any expenses charged separately	X
Subsidies received except from Government	X
Any Taxes other than GST	X
Profit on such Supply	X

Less:
GST included in the cost, if any	(X)
Discounts(if known at the time of supply)	(X)

Value of Supply	XX

Q8) Discuss the determination of value of supply in certain cases other than normal cases.A8) Determination of Value in respect of Certain Supplies: (Rule 32):1.] Value of Supply of Services in Relation to Purchase or Sale of Foreign Currency, Including Money Changing [Rule 32(2)(a)]: The value of supply of services in relation to the purchase or sale of foreign currency, including money changing, shall be determined by the supplier of services in the following manner.a) For a currency, when exchanged from, or to, Indian Rupee (INR), the value shall be equal to the

Event	Value of Supply
Purchase of foreign currency by service supplier	(RBI Reference Rate at that Time –Buying Rate) x Total Unit of Currency
Sale of foreign currency by service supplier	(Seller Rate – RBI Reference Rate at that Time) x Total Unit of Currency

b) If RBI reference rate is not available: In case where the RBI reference rate for a currency is not available, the value shall be 1% of the gross amount of Indian Rupees provided or received, by the person changing the money.c) In case where neither of the currencies exchanged is Indian Rupee: In case where neither of the currencies exchanged is Indian Rupee, the value shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI. i.e. Amount 1 = Foreign Currency Sold * RBI Reference Rate of that Currency to in

Amount I = Foreign Currency Sold * RBI Reference Rate of that Currency to Indian Rupees

Amount 2 = foreign Currency Bought * RBI Reference Rate of that Currency to Indian Rupees

XXX

Gross Indian Rupees = Amount 1 or Amount 2 Whichever is less

XXX

Value = 1% of the Gross Indian Rupees

XXX

	For An Amount	Value of Supply Shall be Calculated at the Rate of:
1)	Upto1,00,000	a) 1% of the gross amount of currency exchanged or b) 250 , whichever is higher
2)	Exceeding 1,00,000 and upto10,00,000	1,000 + 0.5% of the gross amount of currency exchanged
3)	Exceeding 10,00,000	a) 5,500 + 0.1% of the gross amount of currency exchanged; or b) 60,000 Whichever is lower
Such option shall not be withdrawn during the remaining part of that financial year

2.] Option to Determine Value in Relation to Supply of Foreign Currency, Including Money Changing [Rule 32(2)(b)]: At the option of the supplier of service, the value in relation to the supply of foreign currency, including money changing, shall be deemed to be: 3.] Value of Supply of Services in Relation to Booking of Tickets for Travel by Air Provided by a Travel Agent [Rule 32(3)]: The value of the supply of service relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated:a) @ 5% of the basic fare in the case of domestic booking, andb) @ 10% of the basic fare in the case of international bookings of passage for travel by air. Basic Fare [Explanation]: ‘Basic fare’ means that part of the air fare on which commission is normally paid to the air travel agent by the airline.

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