BANKING AFFAIRS

Detailed explanation-1: -Under GST “Value Addition Refers to Expenses “Plus” Profit Cost “Plus Tax Cost Plus Tax “Plus” Profit Tax Plus Profit

Detailed explanation-2: -The business adds the GST to the price of the product, and a customer who buys the product pays the sales price inclusive of the GST. The GST portion is collected by the business or seller and forwarded to the government. It is also referred to as Value-Added Tax (VAT) in some countries.

Detailed explanation-3: -Value of Supply = (Monetary Consideration + In-kind Consideration)-GST on Total Consideration Note: The value of supply includes cess, billable expenses, subsidies, penalties, and all taxes except GST (and any other charges that may or may not be included in the price of the goods and services supplied).

Detailed explanation-4: -A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at the point of retail sale. In other words, its is an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale.

Detailed explanation-5: -GST Applicability on Expense Reimbursement Any incidental charges charged by the supplier to the recipient, as well as any other sum charged for anything done during the supply until the time of delivery of products or supply of services, are included in the value of the supply, according to Section 15(2)(c).