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Contract price - to determine valuation of supply - Gurukul Kendra

Contract price – to determine valuation of supply

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  • Contract price is more specifically referred to as ‘transaction value’ and that is the basis for computing tax.
  • However, when the price is influenced by factors like relationship of parties or where certain transactions are deemed to be supply, which do not have a price, the value has to be determined in accordance with the GST Valuation Rules.

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