Example

Company intends to sell machine of value Rs. 3 lakh shown in assembled condition. When buyer purchases the machine and before being transported to the buyer place it needs to be dismantled. Company appoints a person for this purpose and an amount of Rs. 10000 was paid to him. Whether cost of dismantling will form part of transaction value' 

Answer

Section 15 specifies that any incidental expense in respect of supply made by the supplier before delivery of goods or supply of services shall form part of transaction value. Thus the cost of dismantling paid by company in respect of supply of machine shall form part of Transaction value. Thus value for the purpose of charging GST will be Rs. 310000.