How is the Value of Goods & Services determined under GST?
The value of all the goods and services consumed in an economy is arrived at based on certain metrics. In the current tax regime in India, this value is calculated in different ways. An overview is provided in the table below: Tax Value of goods/services Excise Based on transaction value or quantity of goods or MRP VAT Based on sale value Service Tax Based on taxable value of service rendered Valuation of goods and services Current tax regime Let us look at how the value of goods and services is calculated in the current regime, with the help of an example: Super Cars Ltd, a car manufacturer, sells spare parts to Ravindra Automobiles, their dealers for Rs 6,000. The […]