Rules Rule 29 of CGST Rules i.e. Valuation of Goods between Principal and Agent
Financial Year: 2017
Rule 29 of CGST Rules
Value of supply of goods made or received through an agent
The value of supply of goods between the principal and his agent shall-
(a) be the open market value of the goods being supplied,
or at the option of the supplier,
be 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,
where the goods are intended for further supply by the said recipient.
| Illustration: A principal supplies groundnut to his agent and the agent is supplying groundnuts of like kind and quality in subsequent supplies at a price of five thousand rupees per quintal on the day of the supply. Another independent supplier is supplying groundnuts of like kind and quality to the said agent at the price of four thousand five hundred and fifty rupees per quintal. The value of the supply made by the principal shall be four thousand five hundred and fifty rupees per quintal or where he exercises the option, the value shall be 90 per cent. of five thousand rupees i.e., four thousand five hundred rupees per quintal. |
(b) where the value of a supply is not determinable under clause (a),
the same shall be determined by the application of rule 30 or rule 31 in that order
|
Explanation.-For the purposes of the provisions of this Chapter, the expressions-
(a) open market value of a supply of goods or services or both means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and the price is the sole consideration, to obtain such supply at the same time when the supply being valued is made;
(b) supply of goods or services or both of like kind and quality
means any other supply of goods or services or both made under similar circumstances that, in respect of the characteristics, quality, quantity, functional components, materials, and the reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both. |
Thanks
CA Rahul Gupta