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TMI BlogGST valuation clarification on Partial material supply by the customerX X X X Extracts X X X X X X X X Extracts X X X X ..... As per the Purchase Order between A B a) A has to supply goods to B, b) B will have supplying some critical parts to A at Free of cost, which will be part in the final product ( the parts supplied by B is out of scope of the above Purchase Order, A along with the material purchased by him, while assembling will incorporate the parts supplied by B in the final product as per the design given b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y B, and will be charging as per PO excluding the cost of material supplied by B) c) Now B has request A to import the material in A's name from B s parent company situated in foreign country and B has agreed to reimburse custom duty, GST clearing charges to A, for which A has to raise separate debit note with GST for claiming the reimbursement. A will not be paying for the importer, ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the importer will be remaining unpaid) Request to know from expert i) Will there be any valuation issue for transaction mentioned in point b ii) That could be implication for transaction as mentioned in point c above Thanks in advance - Reply By Amit Agrawal - The Reply = It is my understanding that goods supplied by A are 'manufactured goods by A' where critical components - given o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n FOC basis by B - are used in the manufacturing by A. In such a supply of goods by A, critical components given on FOC basis amounts to 'additional non-monetary consideration' flowing from B to A for supply of the manufactured goods. And valuation for supply by A - for the purpose of charging paying GST - needs to be arrived as per applicable valuation rule. Same will be applicable f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or both scenario b and c listed in the query. These are personal views of mine and same should not be construed as professional advice / suggestion. - GST valuation clarification on Partial material supply by the customer - Query Started By: - suresh sathyamurthy Dated:- 21-2-2022 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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