Mr. Robert is registered under GST in the State of Maharashtra. He sells shoes to his customers locally within the same State. He has been appointed…

CA Final · Indirect Tax Laws · MTP · November 2024
Mr. Robert is registered under GST in the State of Maharashtra. He sells shoes to his customers locally within the same State. He has been appointed as an agent by Baba Shoes Ltd., a company registered under GST in the State of Karnataka. During a financial year, Baba Shoes Ltd., sends taxable goods worth - 4.80 crore from its Bengaluru store to Mr. Robert who sells such goods for 5.00 crore by raising invoices using the GSTIN of Baba Shoes Ltd. Mr. Robert receives a commission of 60.00 lakh from Baba Shoes (P) Ltd., during the said financial year. Compute the value of supply of Baba Shoes (P) Ltd. and Mr. Robert for the financial year assuming that amounts given above are exclusive of GST, wherever applicable.
(A) Baba Shoes (P) Ltd.: Nil and Mr. Robert :5.40 crore
(B) Baba Shoes (P) Ltd.:4.80 crore and Mr. Robert :5.40 crore
(C) Baba Shoes (P) Ltd.:5 crore and Mr. Robert :60 lakh
(D) Baba Shoes (P) Ltd.:5.40 crore and Mr. Robert : Nil

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Baba Shoes (P) Ltd.:5 crore and Mr. Robert :60 lakh

Topics: Value of Supply

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