10. Import of services by Veena & Co. that will be treated as supply is ` ________.
Options
ANil
B` 1,00,000
C` 3,00,000
D` 4,00,000
(2 Marks)
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Taxation - Income TaxQuestion 5633 of 146
All Questions Correct Answer
✅ Option B — ` 1,00,000
All Options:
- ANil
- B` 1,00,000 ✓
- C` 3,00,000
- D` 4,00,000 (2 Marks)
Ad
Detailed Solution & Explanation
Let us analyze the two imported services under the provisions of the CGST Act, 2017:
1. **Architect Services from Mr. Vinod (Partner):**
- Mr. Vinod is a partner of the firm, and partners and firms are related persons.
- The services were imported for a consideration of .
- Under Section 7(1)(b) of the CGST Act, 2017, the import of services for a consideration, whether or not in the course or furtherance of business, is treated as a supply.
- Since there was consideration, the architect services of are treated as a supply.
2. **Management Consultancy Services from Mr. Lal (Ex-employee):**
- The services were imported without consideration.
- Under Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from any of their other establishments outside India, in the course or furtherance of business, is treated as a supply even if made without consideration.
- However, Mr. Lal is an *ex-employee*. Under the GST law, employer and employee are related persons, but this relationship does not extend to ex-employees.
- Since Mr. Lal is not a related person and no consideration was paid, the import of these services does not qualify as a supply under Section 7(1)(b) or Schedule I.
3. **Total Value of Import of Services Treated as Supply:**
- Value = (Architect services only).
Hence, **Option B** is the correct answer.
1. **Architect Services from Mr. Vinod (Partner):**
- Mr. Vinod is a partner of the firm, and partners and firms are related persons.
- The services were imported for a consideration of .
- Under Section 7(1)(b) of the CGST Act, 2017, the import of services for a consideration, whether or not in the course or furtherance of business, is treated as a supply.
- Since there was consideration, the architect services of are treated as a supply.
2. **Management Consultancy Services from Mr. Lal (Ex-employee):**
- The services were imported without consideration.
- Under Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from any of their other establishments outside India, in the course or furtherance of business, is treated as a supply even if made without consideration.
- However, Mr. Lal is an *ex-employee*. Under the GST law, employer and employee are related persons, but this relationship does not extend to ex-employees.
- Since Mr. Lal is not a related person and no consideration was paid, the import of these services does not qualify as a supply under Section 7(1)(b) or Schedule I.
3. **Total Value of Import of Services Treated as Supply:**
- Value = (Architect services only).
Hence, **Option B** is the correct answer.
Key Concepts to Understand
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