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Car invoice sample for Finance

yes just waiting for us to be live yes we are live now good afternoon friends good afternoon to one and all I seea prati N welcome all of you to zest learning how are you all doing I'm quite sure you all are doing very well CA final indirect access session number seven it is and maybe the last session which will be as Live on YouTube next sessions will happen on the app so till now if you have not taken admission but if you want to continue with the batch do consider contacting us on 9028 7829 you can just WhatsApp us we'll give you details of the entire batch and friends I'm quite sure you have subscribe to the channel and hit the Bell icon your favorite Channel CA pratik n yes so how are you all doing I hope you all are doing wonderfully well we have reached rules of value of supply and this rules of value of Supply uh covered in 27 to 35 in that we had started doing 32 so is 32 getting clear and clear to all of you 32 rule 32 sub ruu 2 Clause a that was talking about foreign exchange services in case of foreign exchange services what is the value of Supply so you have to check the difference between uh buying rate SL selling rate as the case may be and Reserve Bank of India reference rate that talks about the profit which is earned okay in case of Foreign Exchange so that profit multiplied by number of units of foreign currency will give you you know accessible value secondly if you don't want to follow 322a you may follow 322b but before going to that if Reserve Bank of India reference rate is not available then what do you do then you take 1% of currency converted in terms of rupees like you remember in our example ABC currency getting it and finally there was one more point if none of the currency exchanged is in rupees then simple consider RBI reference rate convert both the currencies into Rupees whichever is lower value consider that and take 1% of that as accessible value so I hope 322a is clear if you don't want to follow 322a you may go for 322b what is 322b 322b is the presumptive way of calculating accessible value in case of foreign exchange services so it this depends on some slabs what are those slabs okay if currency exchanged is up to rupees 1 lakh then you have to take 1% of the currency in terms of rupees or 250 whichever is higher if your currency exchange exceeds 1 lakh then up to 1 lakh you have to take 1,000 whatever exceeds 1 lakh okay and it is up to 10 lakhs means it is 1 lakh to 10 lakh on that you have to take 0.5% so if you remember there was one example where currency exchanged in terms of rupees was 5 lakhs so what you did on first 1 lakh you took 1,000 next 4 lakh you took .5% which is 4 lakh into .5% which is 2,000 so your total accessible value was 3,000 and lastly dear friends if it exceeds 10 lakhs then you have to take first 1 lakhs 1,000 next 9 lakhs 4,500 because 5% of 9 lakh and lastly whatever exceeds 10 lakh of that you will take .1% getting it so this way you have to go ahead and of course you know in the last lab it cannot exceed rupees 60,000 wonderful yes so Ashima G one more zero there I know it's a typo so it should be 60,000 yes clear so 322b is clear then going next 323 in case of air travel agent Services when I talk about Services given by air travel agent in relation to domestic travel then accessible value is 5% of basic fair if it is international travel then accessible value is rupees not rupees 10% of basic Fair talking about 3 to4 324 means life insurance services so when life insurance services are in relation to Term Policy Term Policy means only life insurance policy then directly the premium amount is accessible value isn't it directly the premium amount is accessible value secondly so in short 324 does not apply if it's a Term Policy but if it's an endowment policy that means the policy is mixture of both life insurance as well as investment SL savings then what happens if it's a single premium annuity policy if if it's a single premium anity policy then you have to take 10% of Premium as accessible value if it is not single but uh if multiple premiums are involved then for the first year premium accessible value is 25% of that premium and for second year premium onwards it is 12.5% that is half of 25% and lastly lastly the most simple one if the insurance policy itself states that how much is going to be towards uh the premium for you know life insurance and how much is going to be towards Investments then whatever is towards life insurance premium that itself will be taken as accessible value okay so this way easily you can cover 324 so I hope till 32 four all of you are absolutely clear before that we had started discussion of basics of GST on inate Supply there shall be cgst plus hgst when you are in Union territory then cgst Plus utgst on Interstate Supply there will be yes there will be igst whether C+ s or i depends on intrastate Supply or inate Supply but inate Supply or Interstate Supply depends on two factors Lo location of supplier and place of Supply isn't it so place of Supply Provisions are given in section 10 11 12 13 of igst act we are going to do them in detail so I hope value of suppli is clear till this point yes sir then you know section 15 actually is of value of Supply section 15 subsection 1 actually accessible value shall be transaction value that is price actually paid or payable for supply of goods or services or both where both supp and recipient of Supply not related to each other and price is the sole consideration what this value includes is given in 15 to what this value excludes is given in 153 so what basically it excludes is Discount a given before or at the time of Supply B given after Supply so I hope that our warm-up of GST is done well now we can start with what we have to do purely today that is 32 5 what is 325 may I discuss with you yes sir see actually very simple so you all know when you have to come to rules you have to come to rules when you can't go ahead and follow uh AV as TV when you can't take 151 accessible value as transaction value you have to go to 154 154 says that value will be as prescribed it is prescribed in rule 27 to 35 of cgst rules and in 32 now we have come till 325 so 30 to5 is what I'm selling Goods but those goods are secondhand Goods getting it those goods are secondhand Goods so in that directly sale price may not be taken as accessible value why so because I might be buying goods from unregistered person if I'm buying goods from unregistered person there is no question of any ITC because he has not charged any output tax so in such cases accessible value is simple selling price minus buying price okay so check where a taxable suppli is provided by person dealing in buying and selling of secondhand Goods mostly imagine a dealer of car you must have seen these days premium cars being sold premium cars means used cars used cars are sold okay pre-owned cars so this particular rule is for that okay that is used Goods as such as such means without changing such original characteristics of goods or after minor processing so little bit of you know denting painting is done which does not change the nature of goods and where no ITC has been availed no ITC has been availed on purchase of such Goods okay the value of Supply shall be difference between selling price and purchase price means say I'm dealing in secondhand cars I bought a secondhand car for 3 lakh rupees after denting painting okay so this was my purchase cost after denting painting lot of marketing I sold it for 450,000 so 450,000 is selling price minus its Purchase cost 3 lakhs so its accessible value shall be 150,000 did you get the difference between selling price and purchase cost because actually my value addition is only 150,000 and GST is on value addition do you all agree with me on this absolutely Ashima yes recent change the rate of GST on this absolutely but how to find accessible value in this case is it clear don't directly tax 450,000 subtract 3 lakh okay because if you tax 450,000 it will be unjust now taxing full 450,000 because my value addition as a dealer in car is only 150,000 did you understand this point all of you yes no would you like to write this so till now we have written everything so go to provisions and Concepts notebook and write this point rule 32 sub Rule 5 assessible value assessible value in case of scale of secondhand Goods in bracket purchased from an unregistered person in GST and therefore no ITC on purchase therefore for no ITC on purchase did you understand it will be equal to selling price minus Purchase cost once you complete this please say d in the chat window but one thing I would like to tell you however if above figure means selling price minus Purchase cost is negative it can happen sometimes that whatever car you have purchased or whatever Goods you have purchased you are not able to sell them profitably so you sell them at a lower price okay so it could be negative so if above figure is negative accessible value will be zero it will be nil as you complete it say d in the chat window it's very obvious point there cannot be negative accessible value so accessible value will be zero yes now one more point I want to tell you listen to that point very carefully deemed We are continuing above Point only deemed Purchase cost see what I'm discussing I'm discussing deemed purchase cost if bank or any financial institution has repossessed secondhand goods from defaulting Bor over did you understand what is being discussed Ashima G defaulting borrower means bank has given loan to X that X did not pay the loan some emis so bank went and repossessed that goods from X and and Bank sold it so now tell me for buying for for bank is there any buying cost for bank now there is no buying cost but they are selling secondhand Goods in course of furtherance of business so they will have to take something as Purchase cost so that is called as deemed Purchase cost for whom for Bank so deemed Purchase cost if bank or financial institution has repossessed secondhand goods from defaulting borrower did you understand what's happening so see assessible value will remain as selling price minus buying cost but whatever what is this buying cost that is the disc discussion going on did you understand can we discuss what is this buying cost are you all with me yes so here original purchase cost can you tell me who has bought who has bought the car or whatever asset so original Purchase cost of asset of asset for whom for of course defaulting borrower do you agree with me but but that cannot be directly taken because few years the asset has been used by defaulting borrower so there has to be some depreciation yes after that bank took it then Bank sold it so what you have to do you have to minus depreciation you have to do less depreciation and percentage point is five 5 percentage is fixed so less depreciation at 5 percentage for every quarter or part thereof did you understand percentage is fixed depreciation percentage is fixed it is 5% for every quarter or part thereof from date of purchase from date of purchase till date of sale did you understand so here when you minus this you are going to get deemed Purchase cost did you understand here you will get deemed Purchase cost did you all understand 100% shall we go ahead and discuss questions based on this say see in the chat window as you complete this why how did you get 5 percentage see Life of CG means life of capital goods as per GST is 5 years getting it it is 5 years and so therefore 5 years means do you agree 60 months so do you agree which is 20 quarters because one year will have four quarters so one quarter will be 3 months so 60 months divided by 3 20 quarters and now what you do 100 divided by 20 because percent Cent means 100 so 5% so did you understand from where you get 5% very logical what 5% per quarter okay or part thereof even part thereof that is what you have to understand shall we go ahead friends yes 100% all of you done just waiting for your confirmation guys see I want to do two questions if you want me to wait at any point let me know ingly see question number six are you all there on question number 16 Mr Rohan is engaged in buying and selling of secondhand cars in japur during the month of December 18 he supplied a used car after some processing at 6 lakh so can I say 6 lakh is selling price which he purchased from customer at 5 lakh 40,000 and no ITC has been availed on such purchase so friends tell me what is the assessible value in this case so assessible value in this case is 6 lakh minus 540,000 that is 60,000 did you all get 60,000 yes no what would your answer be what would your answer be if purchase price of car is 6 lakh 20,000 friends if purchase price of car is 620,000 then 6 lakh less 6 lakh 20,000 will be negative 20,000 means accessible value will be zero wonderful simple isn't it go ahead and complete this what you will say question number 16 please say question number 16 and complete this I'll disappear from your screen as you complete it say in the chat window then I'll come back on the screen and we'll go to next question I hope all of you are absolutely clear e e e so you should be acquainted with the wordings exact wordings that's why asking you to do the presentation e so till what point have you completed just reading your chat window continuously yes you are doing second Point okay very good complete it got it got it e e is it done Ashima G this you must be doing in the sums notebook yes so now going to next question see this Mr X purchased a motor car on 1st October 2018 for 20 lakhs 80% of the purchase price was financed by by easy Finance limited friends I'm not bothered with terms between supplier and recipient of Supply I'm not bothered with that loan was payable in 60 monthly installments I'm not bothered I'm not bothered with that my focus is on value of taxable Supply which is done by Bank okay so Mr X defaulted in repayment of loan and easy Finance limited repossessed the car on 15th September May 2019 actually I'm not even bothered with this date car was disposed on this date matters this is the date of sale of car and this is the date of buying the car and the car was bought for 20 lakhs and the car is sold for 15 lakh 50,000 did you all understand now just tell me so selling price I already have selling price is 15ak 50,000 now what about Purchase cost original cost I already have 20 lakhs but from 20 lakhs I will have to provide depreciation yes can you tell me 1st October 20 2018 to 10th December 2019 is how many quarters sir how to find quarters very simple quarter means period of 3 months ending last day of March June see Jan F March April May June July August September October November December this is definition of quarter given in section two Clause 92 section 2 Clause 92 defines quarter quarter means consecutive 3 months in a calendar year ending last day of March June September and December are you getting it March June September December okay now you have to check you are passing through how many quarters so 1st October 2018 the first quarter that will end is 31st December 2018 so this is first quarter second quarter that will end is 31st March 2019 then 30th June 2019 30th September mber 2019 till now you have not sold so last one 31st December 2019 correct you have sold on 10 December 2019 so you are right there are five quarters in this not the entire quarter but part thereof now part also has to be computed so there are five quarters so five quarters multiplied by 5 percentage points so how much percentage you should depreciate do you agree that we should depreciate the asset by 25% so can you do can you do 20 lakh which was the original purchase cost can you do 20 lakh minus 25% what is 20 lakh into 25% 25% it is 5 lakh so 20 lakh minus 5 lakh is 15 lakh so you should have sold for 15 lakhs ideally but you are selling for 15 lakh 50,000 so 15 lakh ,000 minus 15 lakhs deemed I mean accessible value is rupees 50,000 did you understand this Ashima G how you get accessible value as 50,000 selling price 15 lakh 50,000 minus deemed Purchase cost deemed Purchase cost as original purchase cost minus depreciation if you have understood say you in the chat window and if you have understood it we will go ahead and do the presentation of that so this is your question number 17 yes so are you now doing the presentation all of you first writing the par on what should be the deemed Purchase cost as per 325 the purchase value of rep Goods repossessed from defaulting borrower who is not registered okay shall be deemed to be purchase price of such Goods Goods means 20 lakh by the defaulting borrower reduced by 5 percentage points for every quarter or part thereof between the date of purchase and Disposal by person making such reposition and show this computation 15 lakh 50,000 minus 15 lakh accessible value 50,000 as you reach till 50,000 say d the chat window I'll take you to the working note e e sorry e e so Ashima you are saying done for this one so may I scroll down is it done for you if it is done for you then please do the working note show the quarter calculation systematically yes as you complete with this please say see in the chat window systematic presentation is very critical e e e waiting for you see in the chat window yes I can see you are saying see in the chat window so I hope everything is absolutely clear to you can I go to next rule yes sir go to next rule so 32 5 you have understood let's go to 326 let us go to 32 to 6 what is 30 to 6 see uh sometimes you can be given a a voucher a coupon a stamp Whatever by whatever name it is called okay so what will be the value of that voucher coupon or stamp so the value of will be which is rable against supply of goods or supply of service both shall be equal to money value of goods or services or both redeemable against such voucher coupon or stamp for example um points of a credit card can be redeemed points of a credit card can be redeemed against a voucher of say Taj Hotel so what will be the value of that voucher value of of that voucher will be equal to the money value of services which can be redeemed against that voucher okay so for example 20,000 points of American Express card gives me Taj vouchers of 10,000 rupees getting my point so the price of that gift voucher of 10,000 rupees is 10,000 because if the uh bill of the hotel is 30,000 then to pay that 30,000 I can use this voucher of 10,000 getting it so just a formality rule that voucher of uh value of voucher so just mention it write down rule 32 sub Ru six of as you all know cgst rules value of voucher Etc by whatever name it is called it will be equal to money value it will be equal to money value of goods or services redeemable against the same when you complete writing this say d in the chat window I want to show you exact examples on this done can I show you examples on this yes so see you have to compulsorily write these examples first example is Mr and Mrs B purchases five gift vouchers of thousand each from Raymonds and give them as return gifts to children and their parents on their son's birthday what is the value of Supply so value of Supply will be 1,000 each into 5 5 5,000 as I told you no Challenge and second example Easy Coupons limited sells coupons that are valuable against special cosmetic products at retail outlets each coupon has a face value of 1,500 but it is redeemable for supplies worth 1750 so it it is rable against Goods of 1750 so friends 1750 is going to be the value of Supply getting it because it is money value of the goods so you keep on observing around you there'll be lot of transactions happening in coupons or happening in vouchers so value of that is determined as per this 326 as you complete writing both these examples you'll have to write this example also and its implication both so as you complete it say d in the chat window you understood nashima this example is not with you so you'll have to copy this example also I'll be waiting for your C in the chat window e e e e so is this also done just let me know yes fine so shall we go ahead now 327 friends 327 value of supply of taxable Services by notified service providers between distinct persons so you know uh there is a activity in schedule one which says that uh when supplies between distinct persons distinct person means my head office is in Maharashtra branch is in West Bengal so Supply between my head office in Maharashtra to branch in West Bengal it may be called as Supply between distinct persons so that is chargeable to GST in short that amounts to supply even if it is without consideration that is Supply it is given in schedule one but what is this rule saying value of taxable Services provided by such class of service providers as may be notified by government okay on recommendation of council as referred to in par two of schedule one of said act between distinct persons okay where ITC is available shall be deemed to be nil so in certain cases government may call that value of supplies nil if it is between distinct persons so I'm not noting anything from this rule specifically okay checking its importance I'm not noting anything in this rule shall we go ahead yes now comes 33 pretty important at your final level rule 33 what is Rule 33 it is Services given by supplier as a pure agent all of you write in the chat window pure agent so rule 33 I will just write pure agent may I go ahead and explain you what is meaning of this pure agent all of you with me yes so understand understand what is happening understand I'll give you an example you'll easily understand a practicing a practicing CA is there a practicing CA computes Advanced Tax computes Advanced Tax for his loyal very loyal client okay as rupees 1 lakh so it's a very loyal client he has always been paying fees on time okay very loyal client very Hest client so practicing ca computes for one time he computes his Advanced Tax as rupees 1 lakh client asks CA to pay this tax to pay this tax on his behalf on his behalf as he's on Foreign Tour as he's on on foreign tool did you understand the point therefore CA does the needful CA does the needful and later and later makes invoice as follows later makes invoice as follows what he does he makes a invoice what invoice he makes do you know what invoice he makes Advanced Tax Advanced Tax rupees 1 lakh professional fees professional fees for above computation for above computation 2,500 1 lakh 2,500 add GST at 18% on please tell me what should be the accessible value GST at 18% should be calculated on 1 lakh 2,500 or only 2,500 let me see can you answer this tell me GST should should be calculated on 1 lakh 2,500 or only 2,500 what is your opinion yes what is your opinion no so that is exactly the point GST will be calculated on only 2,500 thankfully because this Advanced Tax amount do you agree this no no no no no this is not Clause B this Advanced Tax amount is allowed to be deducted as it is recovered as as it is recovered as pure agent so it is liability of recipient of Supply see difference see Ashima you are saying that you should includeed as per 152b but what happens in 152b in 152b liability of supplier is paid by recipient of Supply getting it here don't you think exactly opposite is happening it is the liability of recipient of Supply it is paid by supplier and recipient of Supply is doing good that amount so in short how much belongs to supplier actually how much belongs to supplier the amount that belongs to supplier is only 2,500 because as a supplier as a CA I computed your liability 1 lakh you should have paid that one lakh to government and you should have given me fees of 2,500 but just for convenience I'm paying 1 lakh on your behalf to the government and that one lakh you're paying me back so finally uh you know this Advanced Tax amount in my example it's allowed to be deducted as it is recovered as pure agent by whom by CA from whom from client did you understand my point all of you 100% so the amount of GST will be 450 100% did you get it Ashima G I will give you one more example to confuse you first I want to confuse you then I want to convince you that is how it goes can I give you one more example so the example goes like this pay attention CA charges CA charges rupees 1 lakh as professional fees CA charges rupes 1 lakh as professional fees plus telephone expense reimbursement plus telephone expense reimbursement plus travel expense reimbursement okay so uh that is say telephone expense reimbursement is 2,000 travel expense reimbursement is 8,000 so total amount charged is 1ak 110,000 now can can you tell me what is the accessible value is assessible value 1 lakh or 1 lakh 10,000 is assessible value 1 lakh or 1 lakh 10,000 what do you think what is the assessible value tell me tell me waiting for your solution what do you think even if you get it incorrect initially I don't mind but try giving some answer so that permanently you will remember it yes Ashima G reimbursement means okay reimburse means um I spent from my pocket as a CA I spent from my pocket okay and then you gave me I spent from my pocket for giving you service and then you gave me that amount back giving back that is reimbursement so I'll tell you here accessible value is 1 lakh 10,000 and not one lakh because these two are as good as adjustment of 15 to C what is 15 to C if you don't do this expenses if you don't do this telephone expense and if you don't do this travel expense if you don't do telephone expense if you don't do travel expense what what will happen you cannot give the service did you get it so these expenses are incidental to supply did you understand it so what is difference between earlier point and this point earlier point this one lakh rupees was to be paid by recipient of Supply but as a supplier I have paid okay and paying this was not necessary for giving my professional service and this 28,000 is an expense which I only should have paid as a supplier are you getting it I'm not paying this on behalf of recipient of Supply did you understand Ashima difference you may go for audit charge audit fees of 1 lakh and travel expense reimbursment of 8,000 now actually accessible value should be complete amount including the reimbursement amount did you understand have you taken down these examples of pure agent did you understand answer is yes okay have you taken down these examples yes Ashima have you taken down these examples wonderful so now I'll go and do the detailing of pure agent okay just focus you will get opportunity of solving one detailed question on pure agent in this session itself okay so see check value of supply of services in case of pure agent not withstanding anything contained in the provisions of this chapter expenditure or costs incurred by supplier as a pure agent of recipient of Supply shall be excluded from the value of Supply is it clear it shall be excluded from the value of Supply if all following conditions are satisfied namely what conditions supplier acts as a pure agent of recipient of Supply when he makes the payment to third party third party in our example government Advanced Tax was paid to government okay on behalf of recipient of Supply on authorization who gave authorization client give authorization the payment made by pure agent on behalf of recipient of supply has been separately indicated in the tax invoice yes in the tax invoice we represented one lakh separately and we represented uh the 2,500 professional fees separately issued by pure agent to the recipient of service and the supplies procured by pure agent from third party as pure agent of recipient of Supply are in addition to Services he supplies on his own account to yes I have given Professional Services of computation of Advanced Tax clear so all conditions all the things are getting satisfied what is the meaning of the word pure agent what pure agent means he enters into contractual agreement with the recipient of Supply to act as a spure agent to incur expenditure in course of supply of goods or services or both he neither intends means this pure agent he neither in tends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent purely as a supplier I'm availing good service on whose behalf on behalf of recipient of Supply he does not use for his own interest such goods or services so procured and he receives only the actual amount incurred I have exactly received that 1 lakh okay in addition to of course the amount received for Supply he provides on his own account means yes I received that 1 lakh rupees plus 2500 my professional fees did you all understand Ashima G did you get who is who can be called as pure agent any supplier who is incurring some amount on behalf of recipient of Supply is actually pure agent okay here also have given you one illustration Corporate Services firm a is engaged to handle the legal work pertaining to incorporation of Company B okay so firm a is supplier Company B is recipient of Supply now other than it service fees a also recovers from B registration fee approval fee for the name of the company paid to the register of companies so friends as firm a I'm taking my own fees plus government charges government charges are paid on whose behalf government charges are paid on behalf of Company B getting it the fees charged by roc for registration and approval of name are compulsory LED on B A is merly acting as pure agent in payment of those fees therefore is recovery of such expense is a disbursement and not part of value of Supply made by A to B okay now I'm going to one more question my request to all of you will be this is example of pure agent my request to you will be take screenshot of this are you all with me this is a question based on pure agent I'll disappear from your screen take screenshot of this this will be your screenshot number one for rule 33 once you take screenshot of this say d in the chat window yes now go ahead and take screenshot of this and say see in the chat window waiting for your C okay that's it take screenshot of this waiting for your D now is it done guys I'll come back on your screen now yes so let's read the question afterwards you will get this I'll send this also to you but it solution we will present together but first let's go through the question okay if you want you may leave one page for the question in your notebook is the instruction clear Ry poly manufacturers limited registered in Mumbai is manufacturer of Footwear it Imports Footwear making machine from us rolly pooly manufacturers limited wants to Avail Services of rudra logistics so friends rudra Logistics becomes supplier do you agree and Ry poly manufacturers limited becomes recipient of Supply do you all agree with me on this rudra Logistics a licensed custom broker with its office at ahmdabad in meeting all legal formalities and getting the machine cleared from the custom station clear so far so good rolly manufacturers limited also authorizes so see recipient of Supply authorizes rudra Logistics to incur on its behalf expenses in relation to clearance of imported machine from Custom station and bring the same to its warehous house at Mumbai did you all understand till this point these expenses these expenses would be reimbursed by rly poly manufacturers limited to rudra Logistics on actual basis okay and more importantly in addition Ry manufacturers limited will also pay agency charges to rudra Logistics so friends do you agree that GST should be only on the agency charges rest of the things will be incurred by supplier on behalf of recipient of Supply rudra Logistics raised an invoice in July as follows check how is the invoice on which things will you charge GST keep on telling me and which things you will exclude while Computing accessible value check first agency charges of 5 lakh please include them on that GST will be there unloading of machine at kandla Port Gujarat charges for transport of machine from kandla Port to Logistics rudra Logistics go down in ahmdabad okay then charges of transport of machine from rudra Logistics aabad go down to Warehouse of rly poly export import house in Mumbai customs duty on machine dock dues Port charges so friends this 227 this 2 to7 are in C by supplier on behalf of recipient of Supply getting it to give this agency service Hotel expense traveling expense and telephone expense are incurred by that uh are incurred by that rudra Logistics so yes include them this is to be included as per 152c expenses which are incidental to supply are you getting my point but these are to be excluded as pure agent by applying rule 33 any doubt and all the figures are exclusive of GST so 5 lakh plus 45,000 + 50,000 + 2,000 5 lakh 97,000 will be accessible value did you all get the point that was the question compute value of Supply is it 100% clear to all of you wonderful wonderful now would your answer be different I want Ashima to answer this would your answer be different if rudra Logistics charges 13,000 as lumsum consideration for clearing the imported machine a single invoice is given directly charging rupees how much directly charging rupees 13 lakhs without showing bifurcation of anything then what will be your accessible value so would your answer be different if rudra Logistics charges 13 lakh as lumsum for clearing imported machine from Custom station and bringing the same to the warehouse of rly poly manufacturers so if you don't present it separately in the invoice directly 30 lakhs will be accessible value because the main point is if anything has to be excluded as pure agent then you have to separately show it in the invoice you can't say 1 lakh 2,500 Advanced Tax including professional fees for computing Advanced Tax no then you can't exclude that one lakh you have to show the amount which is incurred as pure agent separately did you get it so in first case answer is 597 in second case answer is 13 lakhs did you all understand please go ahead and present the solution this is what I mean by P part when I see u r p should be done the batch itself u means understanding that is done retention we are doing by presenting I mean uh by writing the important things in the provisions and Concepts notebook and keeping it revising and this is the P part presentation part so in your sums notebook leave one page for the question of this and next page start writing solution first write meaning of pure agent then write the conditions to be fulfilled okay to qualify as pure agent so are you presenting this in the notebook just let me know I will not disturb you if you are doing its presentation let me know Ashima G are you doing its presentation if yes I will not disturb you and I will just scroll down when you complete first two Paras this you can consider as first point this you can consider as second point this is all c a final questions no no no no no first please complete it I would request you as per explanation to rule 33 of cgst rules pure agent means a person who a enters into first point is contractual agreement second point is neither intends to hold nor holds any title does not use for his own interest and receives only the actual amount in addition to amount received for Supply he provides on his own account and then Supply needs to fulfill all of the above conditions to qualify as pure agent in given case so you can see that this could be second point in given case rudra Logistics has been authorized by recipient of Supply rly pooly manufacturers limited to incur on its behalf expenses in relation to clearance of imported machine from Custom station and bringing the same to the warehouse of recipient that is expenses mentioned in point 2 to7 further rudra Logistics does not hold any title to the said services and does not use them for his own interest so yes I'll be waiting for you uh Ashima G as you complete Point number one and two State D in the the chat window e till what point have you reached Ashima G okay so fine no problem lastly rudra Logistics receives only actual amount incurred he receives only actual amount incurred to procure such services in addition to agency charges thus finally we prove that rudra Logistics is a pure agent in this case okay so then you will say that rule 33's conditions are getting satisfied all the three conditions by no problem take screenshot of this I'll just move out of your way once you take the screenshot say see in the chat window but I want this to be presented in a notbook before the start of next session clear now you will do that right Stacy once you take the screenshot okay ingly the value of supply of rudra logistics will be computed as under agency charges pay GST on 97,000 also pay GST this is nothing but yes yes you will of course complete it I know your sincerity but I telling you in general because many students would be watching this all of them common instruction yes and finally the sub answer for the sub question that uh if rudra Logistics had charged 13 lakh as lump some uh consideration for getting the imported machine cleared from Custom station and bringing the same to the warehouse of rly poly manufacturers limited then in that case you know rudra log itics would incur expenses 2 to7 for its own interest as agreement requires it to get imported machine cleared from the custom station and bring the same to the rly poly manufacturers limited Warehouse thus rudra Logistics would not be considered as pure agent of rly poly manufacturers limited for the said services and you know therefore accessible value will be rupees 13 lakhs did you all understand yes no yes sir we have understood and please take screenshot of this I'm going out of your way for one moment as you complete taking screenshot say see in the chat window waiting for your C okay so friends I hope you have followed this topic well rule number 32 rule number 33 that day in the beginning only I had already told you rule 35 so what remains now 34 so I'm going to do 34 immediately okay mind you I'm going to do 34 immediately right now and then in next session we will do 27 28 29 3031 okay so 27 to 31 would be agenda for tomorrow's session is it clear to all of you can I go to 34 what is 34 I want you to do 34 in your provisions and Concepts notebook very straightforward 34 is determination of rate of exchange how will you determine rate of exchange determination of what rate of exchange for computing what for computing asset able value in what case in case of imports and exports in case of imports and exports is it clear to all of you what we are trying to say determination of rate of exchange how will you determine rate of exchange for computing accessible value in case of imports and exports shall we check so see there are two possibilities see uh import is taxable all of you know that of course because place of Supply is in India but that import could be in foreign currency how to convert that foreign currency in rupees so that you can calculate GST on that as simple as that if we take the services of Zoom Inc for conducting our uh meetings for conducting our classes then place of supplies in India but Zoom will give the billion dollars now how will they convert that in rupees to charge GST that is the question so in case of services in case of services how will you determine in case of services how will you determine rate of exchange and how will you determine rate of exchange in case of goods in case of services it will be as per generally accepted accounting principles that is Gap g a a p the rate of exchange will be as per Gap C for services the rate of exchange of value of taxable Services shall be rate of exchange determined as per Gap as on which date as for the date of time of supply of such Services as per section 13 of the ACT you can check what is section 13 of the ACT 13 of cgst act so as per Gap as per generally accepted accounting principles as on date determined as per section 13 of cgst act that is time of Supply that is time of Supply clear and for goods it is as per Customs it is as per Customs act getting it so when you do Customs you'll understand this in detail so here I will not discuss anything about that it is as per Customs so when we do basics of Customs you will understand it better clear all of you so check the rate of exchange for taxable Goods shall be as notified by the board under section 14 of the Customs act clear so we'll do that when we go in the topic of customs so friends is this absolutely clear to all of you have you taken this down rule 34 yes so when we go to now next session we will do 27 to 31 of cgst rules maybe next two sessions of 1 and/ half hours each and the all important topic of value of supply will be done have you followed it well please let me know friends is this 34 principles completed in your notebook please let me know Ashima G is it done please let me know so that we can end today's session yes sir so friends thank you so much for being such wonderful audience first seven sessions were on YouTube so I hope you have enjoyed them so now from next session onwards it will be in our app okay so those who want to go ahead and continue with the batch I request you to contact on 9028 7829 your onstop solution for doubt solving as well as inquiries for the classes and I'm quite sure you have subscribed to ca pratik n the YouTube channel on which you enjoying these lectures so thank you so much and arise awake and stop not till the goal is reached your goal is to clear CF final exams that's your preliminary goal and you know completing that of course you will get new goals but first primary goal right now is completing CA final and I'm quite sure that this batch is going to help you in that so this batch will help you not only for ID but for other subjects as well for preparing notes for presentation and all these things so friends I'll see you in the next session till then keep studying keep smiling stay blessed may God bless you