Example: - 8
X pays Rs 4,200 to Y Toy Factory for a Supply of toys. Rs. 4,200 consists of Rs
4,000 for the toys and 200 for special packing. Y Toy Factory would have charged
Company X Rs. 5,000 for the toys; however, because Y owed Company X Rs 800,
therefore, Y charged only Rs. 4,200 for the toys. What is the transaction value?
The transaction value of the Supply for toys is Rs. 5,000, i.e., the sum of the
4,000 plus the Rs. 200 for special packing as incidental expense and indirect
payment of Rs. 800. As per Section 15 Value of Supply is the transaction value
i.e. Price actually paid or payable for the supply of toys when price is the
sole consideration and seller and buyer are not related person.