Case Law Details
In re Hical Technologies Private Limited (GST AAR Karnataka)
Whether the value of free of cost supplied by principal not to be included in value of supply by job worker?
The nature of supply done by the applicant is one composite supply consisting of two supplies – one relating to the manufacturing service on the physical inputs (goods) owned by others (Service Accounting Code 9988) and the other relating to supply of non-critical components, with the former being the principal supply. Hence the entire transaction is to be treated as the supply of manufacturing service on the physical inputs (goods) owned by others (Service Accounting Code 9988) and is taxable at the rate applicable to the same at 18%; and
The value of the goods provided by WIPL would not form the part of the value of the supply and must be excluded while valuing the supply.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,KARNATAKA
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