Example: - 16
Company
intends to sell exercise machine of value Rs. 5 lakh and shown in assembled condition. When buyer
purchases the machine and before being transported to the buyer place it needs
to be dismantled. Company appoints a person for this purpose and an amount of Rs.
15000 was paid to him. Whether cost of
dismantling will form part of transaction value?
Ans.
Section 15 specifies that any incidental expense in respect of supply
made by the supplier before delivery of goods or supply of services shall form
part of transaction value. Thus the cost of dismantling paid by company in
respect of supply of exercising machine shall form part of Transaction value.