188.
A, a sole proprietor,
supplied 1000 pieces of a product. Other particulars are as under:
Total taxable
value = Rs. 5,00,000
Total GST payable =
Rs. 90,000
Market price = Rs.
600 per piece
The GST authorities
have confiscated the goods and taxable
person has been given an option to get the said
books released on payment of fine equal to margin of profit.
Compute the
following
(i)
The amount of fine payable
(ii)
Maximum amount of fine u/s 130 if conveyance is owned by owner
(iii)
Maximum amount of fine u/s 130 if conveyance is hired by owner
|
Total taxable value of goods |
500,000 |
|
Add: total GST payable |
90,000 |
|
Total cost to buyer |
5,90,000 |
|
Market price (600 * 1000) |
6,00,000 |
|
Marin profit |
10,000 |
(i) Amount of fine payable = 10,000
(ii) Maximum fine imposable u/s 130 when conveyance is owned by owner of goods
= market value of confiscated goods – tax chargeable
= 6,00,000 – 90,000
= Rs. 5, 10,000
(iii) Maximum fine imposable u/s 130when hired conveyance is used
= tax payable on goods being transported
= Rs. 90,000