Example: - 10

An Audit firm XY & Associates of Faridabad undertakes an audit assignment of client in Delhi. The contract mentioned about audit fees of Rs 75000 and arrangement of taxi is also made by client, which may be worth Rs 5000. What is the Value of Service?

Answer

Section 15 provides that where price is not the sole consideration or supplier and recipient is related then value shall be determined as per valuation rule.

As per Rule 27(DETERMINATION OF VALUE OF SUPPLY),where value is not determined  as open market value,  then  amount equivalent for non monetary consideration, if known  at the time of supply, would be added towards the monetary consideration  of the value of supply of service.

Here the value for the purpose of GST is Rs. 80000 according to Rule 27 i.e. the consideration in money plus amount equivalent for consideration not in money.