Rule 35. Value of supply inclusive of integrated tax,
central tax, State tax, Union territory tax. -
Where the value of supply is inclusive of integrated
tax or, as the case may be, central tax, State tax, Union territory tax, the
tax amount shall be determined in the following manner, namely,-
Tax amount = (Value inclusive of taxes x tax rate in %
of IGST or, as the case may be, CGST, SGST or UTGST) (100+ sum of tax rates, as
applicable, in %)
Explanation. - For the purposes of the provisions of
this Chapter, the expressions-
(a) "open market value" of a supply of goods
or services or both means the full value in money, excluding the integrated
tax, central tax, State tax, Union territory tax and the cess payable by a
person in a transaction, where the supplier and the recipient of the supply are
not related and the price is the sole consideration, to obtain such supply at
the same time when the supply being valued is made;
(b) "supply of goods or services or both of like
kind and quality" means any other supply of goods or services or both made
under similar circumstances that, in respect of the characteristics, quality,
quantity, functional components, materials, and the reputation of the goods or
services or both first mentioned, is the same as, or closely or substantially
resembles, that supply of goods or services or both.
