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Valuation of rent a cab services, Goods and Services Tax - GST

Issue Id: - 113706
Dated: 6-5-2018
By:- Ashwini Hegde
Valuation of rent a cab services

  • Contents

Whether toll charges, permit charges and parking charges collected indicated separately in the invoice as reimbursement chargeable to GST?

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Showing Replies 1 to 12 of 12 Records

1 Dated: 6-5-2018
By:- Alkesh Jani

Sir, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value (refer Section 15(2) of the CGST Act, 2017).

In view of above, I am of the view that, toll charges, permit charges and parking charges collected are to be added to arrive at taxable value, even if the said charges are paid by your client during the transit.

Our expert may correct me if mistaken

Thanks


2 Dated: 6-5-2018
By:- KASTURI SETHI

I concur with the views of Sh.Alkesh Jani Ji.


3 Dated: 6-5-2018
By:- Ashwini Hegde

Thank you Sir. But toll charges are exempted​ vide entry 23 of 12/2017-ct notification. Still to be added to the value?


4 Dated: 6-5-2018
By:- KASTURI SETHI

Yes. Exemption has no link as these are expenses.


5 Dated: 6-5-2018
By:- KASTURI SETHI

And no deduction is allowed here on the ground of exemption from GST.


6 Dated: 6-5-2018
By:- Rajagopalan Ranganathan

Sir,

In my opinion Sl. No.23 of Notification No. 12/2017- Central Tax (Rate) dated 28.6.2017 exempts gist payable on toll charges collected by the person in charge of the toll booth.station. It is not exempting inclusion of toll charges in the value of the goods or services or both supplied.

In view of the provisions of Section 15 (2) (c) of CGST Act 2017 " incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services" is includible in the value of supply. Therefore except CGST, SGST or UTGST all other expenses incurred for the supply is includible in the value of supply.


7 Dated: 6-5-2018
By:- Ashwini Hegde

Thank you very much to both of you Sir.


8 Dated: 6-5-2018
By:- YAGAY and SUN

In our view also such charges/expenses are required to be included to arrive at taxable value on which GST would be chargeable.


9 Dated: 6-5-2018
By:- Kishan Barai

Its a kind of services when cab man pays toll instead of the client. #GST Chargeable


10 Dated: 7-5-2018
By:- Ganeshan Kalyani

Toll charges etc shall have to be added to the value to pay GST. Pure agent concept will not work here.


11 Dated: 7-5-2018
By:- YAGAY and SUN

Relevance of Pure Agent Under GST

The concept is borrowed from the erstwhile Service Tax Determination of Value Rules, 2006 and carried forward under GST.Under the GST Valuation Rules 2017,a pure agent is given the following meanings.

A “pure agent” means a person who:-

(a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;

(b) neither intends to hold nor holds any title to thegoods or services or both so procured or provided as pure agent of the recipient of supply;

(c) does not use for his own interest such goods or services so procured; and

(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for the supply he provides on his own account.

Some examples of pure agent are:

1. Port fees, Port charges, Custom duty, dock dues, transport charges etc. paid by Customs Broker on behalf of owner of goods.

2.Expenses incurred by C&F agent and reimbursed by principal such as freight, godown charges.


12 Dated: 8-5-2018
By:- Ganeshan Kalyani

Correct Sir.


1

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