Rule 32. Determination of value in respect of certain
supplies.-
(1) Notwithstanding anything contained in the
provisions of this Chapter, the value in respect of supplies specified below
shall, at the option of the supplier, be determined in the manner provided
hereinafter.
(2) The value of supply of services in relation to the
purchase or sale of foreign currency, including money changing, shall be
determined by the supplier of services in the following manner, namely:-
(a) for a currency, when exchanged from, or to, Indian
Rupees, the value shall be equal to the difference in the buying rate or the
selling rate, as the case may be, and the Reserve Bank of India reference rate
for that currency at that time, multiplied by the total units of currency:
Provided that in case where the Reserve Bank of India
reference rate for a currency is not available, the value shall be one per cent
of the gross amount of Indian Rupees provided or received by the person
changing the money:
Provided further that in case where neither of the
currencies exchanged is Indian Rupees, the value shall be equal to one percent
of the lesser of the two amounts the person changing the money would have
received by converting any of the two currencies into Indian Rupee on that day
at the reference rate provided by the Reserve Bank of India.
Provided also that a person supplying the services may
exercise the option to ascertain the value in terms of clause (b) for a
financial year and such option shall not be withdrawn during the remaining part
of that financial year.
(b) at the option of the supplier of services, the
value in relation to the supply of foreign currency, including money changing,
shall be deemed to be-
(i) one percent. of the gross amount of currency
exchanged for an amount up to one lakh rupees, subject to a minimum amount of
two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of
the gross amount of currency exchanged for an amount exceeding one lakh rupees
and up to ten lakh rupees; and
(iii) five thousand and five hundred rupees and one
tenth of a per cent. of the gross amount of currency exchanged for an amount
exceeding ten lakh rupees, subject to a maximum amount of sixty thousand
rupees.
(3) The value of the supply of services in relation to
booking of tickets for travel by air provided by an air travel agent shall be
deemed to be an amount calculated at the rate of five percent. of the basic
fare in the case of domestic bookings, and at the rate of ten percent of the
basic fare in the case of international bookings of passage for travel by air.
Explanation. - For the purposes of this sub-rule, the
expression "basic fare" means that part of the air fare on which
commission is normally paid to the air travel agent by the airlines.
(4) The value of supply of services in relation to
life insurance business shall be,-
(a) the gross premium charged from a policy holder
reduced by the amount allocated for investment, or savings on behalf of the
policy holder, if such an amount is intimated to the policy holder at the time
of supply of service;
(b) in case of single premium annuity policies other
than (a), ten per cent. of single premium charged from the policy holder; or
(c) in all other cases, twenty five per cent. of the
premium charged from the policy holder in the first year and twelve and a half
per cent. of the premium charged from the policy holder in subsequent years:
Provided that nothing contained in this sub-rule shall
apply where the entire premium paid by the policy holder is only towards the
risk cover in life insurance.
(5) Where a taxable supply is provided by a person
dealing in buying and selling of second hand goods i.e., used goods as such or
after such minor processing which does not change the nature of the goods and
where no input tax credit has been availed on the purchase of such goods, the
value of supply shall be the difference between the selling price and the
purchase price and where the value of such supply is negative, it shall be
ignored:
Provided that the purchase value of goods repossessed
from a defaulting borrower, who is not registered, for the purpose of recovery
of a loan or debt shall be deemed to be the purchase price of such goods by the
defaulting borrower reduced by five percentage points for every quarter or part
thereof, between the date of purchase and the date of disposal by the person
making such repossession.
(6) The value of a token, or a voucher, or a coupon,
or a stamp (other than postage stamp) which is redeemable against a supply of
goods or services or both shall be equal to the money value of the goods or
services or both redeemable against such token, voucher, coupon, or stamp.
(7) The value of taxable services provided by such
class of service providers as may be notified by the Government, on the
recommendations of the Council, as referred to in paragraph 2 of Schedule I of
the said Act between distinct persons as referred to in section 25, where input
tax credit is available, shall be deemed to be NIL.
