Taxation - Income TaxQuestion 5585 of 146
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4. Received from the performance of Fusion dance which includes both western and classical dance 1,45,000 Value of taxable supply of Mrs. Padmini for the month of June 2024 will be ` ___________.

Options

A` 2,75,000
B` 4,20,000
C` 6,70,000
D` 19,20,000
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Correct Answer

Option C` 6,70,000

All Options:

  • A` 2,75,000
  • B` 4,20,000
  • C` 6,70,000
  • D` 19,20,000

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Detailed Solution & Explanation

Let us determine the value of taxable supply for Mrs. Padmini for the month of June 2024:
1. Fees for teaching Kathak: Kathak is a recognized classical dance form. Under Entry 80 of Notification No. 12/2017-Central Tax (Rate), services by way of training or coaching in recreational activities relating to arts or culture by an individual are exempt. Therefore, the fees of 12,50,000\displaystyle ₹12,50,000 for teaching Kathak are exempt.
2. Fees received from a TV channel as a Guest Anchor: This does not qualify for any exemption and is a taxable service. Taxable value = 2,75,000\displaystyle ₹2,75,000.
3. Fees for Kathak performance: Under Entry 78 of Notification No. 12/2017-Central Tax (Rate), services by an artist by way of performance in folk or classical art forms are exempt if the consideration charged does not exceed 1,50,000\displaystyle ₹1,50,000. Since the fees received are 2,50,000\displaystyle ₹2,50,000 (which exceeds the threshold of 1,50,000\displaystyle ₹1,50,000), it is fully taxable. Taxable value = 2,50,000\displaystyle ₹2,50,000.
4. Fees for Fusion dance performance (which includes western and classical dance): Fusion dance is not a folk or classical art form, so the exemption is not applicable. The fees are taxable regardless of the amount. Taxable value = 1,45,000\displaystyle ₹1,45,000.

Total Value of Taxable Supply = 2,75,000 (Guest Anchor)+2,50,000 (Kathak Performance)+1,45,000 (Fusion Dance)=6,70,000\displaystyle ₹2,75,000 \text{ (Guest Anchor)} + ₹2,50,000 \text{ (Kathak Performance)} + ₹1,45,000 \text{ (Fusion Dance)} = ₹6,70,000.

Hence, **Option C** is the correct answer.

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