CAF-2 · Chapter 17 · Question 11 of 15
A registered person makes a taxable supply of a home appliance to a consumer from the general public on an installment basis. The cash (open market) price of the appliance is Rs. 150,000, but the total installment price inclusive of markup is Rs. 180,000. What is the value of supply for calculating sales tax?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Rs. 150,000
Explanation
In case a taxable supply is made to a consumer from the general public on an installment basis at a price inclusive of markup rendering it higher than the open market price, the value of supply shall strictly mean the open market price of the supply excluding the amount of tax (i.e., Rs. 150,000).
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