Valuation of Cross Charge

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..... Valuation of Cross Charge
Query (Issue) Started By: - THDC India Dated:- 16-9-2022 Last Reply Date:- 21-9-2022 Goods and Services Tax - GST
Got 6 Replies
GST
Dear Expert, Kindly share your valuable opinion on following matter: While cross charge, whether GST component should be reduced from the taxable value due to provision of section 15(2)(a) and thereafter GST should be levied on .....

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..... value obtained after reducing GST component. Reply By KASTURI SETHI: The Reply: No such deduction is allowed.For valuation purpose, also see Section 15(4) read with Section 25(4) of CGST Act and Rule 28 of CGST Rules,2017 Reply By Shilpi Jain: The Reply: In case the recipient (distinct / related person) is eligible for full credit, any value can be adopted. Reply By KASTURI SETHI: The Reply: .....

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..... Madam, Pl. throw light on the words, 'any value' for enrichment of my knowledge. Thanks a lot. Reply By KASTURI SETHI: The Reply: Dear Querist, For more details, go through this article/web-link www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9991 Reply By THDC India: The Reply: Dear Sir, By not reducing the GST component during Cross Charge, wouldn't it vio .....

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..... late fundamental of GST i.e. cascading effect of tax. In other words, GST would be charged again on GST component. For the clarification, Recipient is also not eligible to avail ITC. Reply By Ganeshan Kalyani: The Reply: Proviso to rule 28 states as, "Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be th .....

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..... e open market value of the goods or services." In view of this proviso you may change taxable value without GST if the receiving person is able to take credit.
Discussion Forum - Knowledge Sharing .....

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