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TMI Blog2020 (4) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... elated persons and when the price is the sole consideration of the supply - Since the issue in hand is related to valuation of goods supplied within India and billing is being done in foreign currency, thus Rule 34 of the Rules is to be applied here. Which rate of exchange (import or export) shall be applicable as notified by the Board under section 14 of the Customs Act, 1962, to determine the value of goods? - HELD THAT:- In exercise of the powers conferred by Section 14 of the Customs Act, 1962, the Government of India issued notification time to time to determine the rate of exchange of conversion of the foreign currencies relating to imported and export goods. In this context, we have peruse the letter dated 23.12.2019 of the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following questions: a. In case where goods are supplied within India and billing is to be done in foreign currency, which exchange rate to be applied rate prescribed for export of goods or for import of goods; b. Any other clarification regarding application of rate to convert foreign currency into Indian rupees to pay GST. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said subsection (2) of Section 97 of the Act adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II, Tangedco, Chennai and M/s. Bharat Heavy Electricals Ltd, Power Sector-Marketing, New Delhi for engineering, procurement construction of 2 x 660 MW Coal based Udangudi Supercritical Thermal Power Project-I . In the said contract, price is in three currencies viz Rupees, USD and Euro. The certain supply to the said contract is being made by the applicant wherein billing on customer is to be done in foreign currency and since the customs declare exchange rate under two categories, one is for import and second is for export, the applicant sought which exchange rate is applicable in their case to arrive at the value of taxable supply. Further the applicant vide their letter dated 23.12.2019 has submitted their defence submissions in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation .-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity; (c) if the value is not determinable under clause (a) or (b), be the value as determined by the application of rule 30 or rule 31, in that order: Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services. Rule 29 of the Rules. Value of supply of goods made or received through an ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13 of the Act. 7. On perusal of legal provisions (supra), we observe that Transaction Value is the basis for valuation for supply of goods and/or services under the GST Regime. For the levy of tax, first we have to determine the transaction value. Transaction Value' is the price actually paid or payable for supply of goods and/or services. We also observe that Section 15 of the Act provides the provisions for determining the value of goods and services. It provides the mechanism to know how to calculate the value of goods or services when supply of goods and services is made between unrelated persons and when the price is the sole consideration of the supply. We further observe that the provisions of the value of supply unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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