Example 23

Rs. 140000 are changed into Euro and the exchange rate offered is Rs 70 per Euro. RBI ref. rate for conversion of INR into euro is not available. Calculate value of supply.

Ans. First proviso of  Rule 32(2)(a) (Determination of value in respect of certain supplies)provides that if RBI rate for currency is not available, then value of supply would be calculated as follows;

Value of supply = 1% of gross amt of Indian rupees provided or received.

Value =1% of 140000

          = 1400