Kriti Advisory Logo: India Entry Services
 

Services
India Entry Services
Corporate Advisory Services
Corporate Law Services
Due Diligence Services
Service Tax Services
RBI / FEMA Services
Registered Office Services
IT/SEZ/EOU Approvals & Compliances
STPI/SEZ/EOU
Customs
Service Tax Services
DOT Licensing
Corporate Finance & Strategy
Corporate Finance
Corporate Strategy & Restructuring
News & Views
  
Download
Brochure

Blog
Articles


News Detail

NO TAX BENEFIT FOR GOODS PURCHASED ON EXCHANGE BASIS

Friday, April 28

Currently in most parts of the Country, tax is payable on the money consideration paid by a customer. However, under the proposed draft valuation rules under GST, the supply value will be the market value of the goods itself i.e. the open market value. Example: if a person is buying a new mobile phone for Rs. 30,000/- & in case you take the exchange offer and get it for Rs.25,000/-, the GST will be levied on Rs. 30,000 as against Rs. 25,000/- in the current tax structure. This differential levy arising out of non-adjustment of value of old products will pinch the pocket of an individual customer. Another consequence may be the rolling out of exchange offers for white goods like mobile phones, refrigerators, television sets, cars, laptops etc.

BACK