5. Ascertaining value for determination of Value Added Tax.-

5. Ascertaining value for determination of Value Added Tax.-

(1)     In case of importation of goods, the amount on which the value added tax shall be payable shall be ascertained by adding the amount of Import Duty, supplementary duty and all other duties and taxes, (if any), except the Advance Income Tax payable, to the assessable value determined under sections 25 or 25A of the Customs Act.

(2)     Subject to the provisions of sub-section (3) in case of supply of goods, the value on which  value  added  tax  shall  be  payable,  shall  be  the  consideration  of  the  goods receivable  by  the  manufacturer  or  producer  or  trader  from  his  buyer,  which  shall include the value of purchase, inputs, all costs of the manufacturer of producer or of the trader and, where applicable paid commission, charge, fee and all other duties and taxes including Supplementary duty (except value added tax) and profit: (Condition: omitted,

2010)

Provided that, in the case of supply of certain goods or class of goods by a trader, the Board  may, by notification in the official Gazette, for the purpose of determining the base of value added tax fix the rate and quantum of the value added tax of that goods or the class of goods.

(2a)  In  respect  of  contract  based  production  of  brand  named  goods  of  any  registered manufacturer  by  any  other  registered  producer,  the  Board  may,  by  rule,  set  the procedure of determining value of that goods.

(2b)  A producer or importer may, if he intends to supply goods at uniform value printed on the body  or container or packet of the goods, supply the goods, subject to the prior approval of the Board and on payment of the entire tax, in the case of producer at the production stage and in the case of importer at the stage of supply, in accordance with the procedure set by Rule.

(2c)  Notwithstanding anything  contained in sub-section  (2) the Government may, with a view to keeping the price of any goods or services static, determine the unique value through any of  its  department or agency and in case of such determination the value added tax or supplementary duty shall be payable by back calculation on such value.

(3)     The Government may, by notification in the official Gazette, select the goods on which value  added  tax  shall  be  imposed  on  the  retail  price  basis  and  for  the  purpose  of imposing value added tax, the retail price of such goods shall be the price determined by its manufacturer or producer with the approval of the concerned Officer, on which all costs, commission, charges duties and taxes shall be included, and such goods shall be sold to the general consumers at that price (which shall be printed on the body of the goods or on every packages, sachets or cells  distinctly, conspicuously and indelibly) after putting special brand or mark on the body of that goods.

(4)     In the case of providing service value added tax shall be imposed on the total receipts:

                                                                                                                                                                                                                                                                Provided that, in respect of any specific service, the Board may, by order, determine the value added tax on the basis of actual Value Addition or determine the value added tax based on specific rate of value addition by notification in the official Gazette.

Provided further  that even  if the service  renderer renders  services  free of cost,  the

Government may impose minimum value added tax by gazette notification.

(4a)  In case of supply of goods by a registered or a register able trader, value added tax may be  imposed on the basis of total value received or deemed to have been received as determined  in  accordance with the procedure set by Rule, against his supply in any particular tax period.

(5)     In the case Goods on which trade discount is allowed, value added tax shall be charged on the supplied value of the goods after deduction of trade discount:

Provided that, the value on which goods are supplied after deduction of trade discount shall  be  shown  in  the  invoice  and  the  amount  of  trade  discount  allowed  shall  be consistent with the normal trade practice.

(6)     omitted.

(7)     Notwithstanding anything contained in this section, if the Board, in consideration of public interest and after appropriate investigation, is satisfied that, it is expedient in the case  of  any  taxable  goods  or  service  to  fix  its  Tariff  Value  for  the  purpose  of determining value added tax or, as the case may be, value added tax and supplementary duty, the Board may, by order published in the official Gazette, fix the Tariff Value of such goods or services.

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