Ques: 949: A TRADER OF SPORTS T-SHIRTS AND SHOES TRANSFER T-SHIRTS AND SPORTS SHOES TO A SPORT TEAM WITHOUT CONSIDERATION AND RAISE INVOICE FOR THE SAME IN RETURN THE TEAM DO ADVERTISMENT OF THE TRADER WITH THE LOGO OF TRADER ON SHIRTS AND SHOES AND RAISE INVOICE OF THE ADVERTISEMENT WITHOUT CONSIDERATION WHAT WILL BE TREATMENT OF ITC IN THIS CASE

Ans: It’s barter transaction and taxable on fair market value of that advertisement

Ques: 948: What is the place of supply when Howrah – New Delhi Rajdhani Express supplies food taken on board in Uttar Pradesh ?

Ans: It will be UP local supply

Ques: 947: A PERSON RENDERS ADVISORY SERVICES TO A PRIVATE LIMITED COMPANY(SUBSIDIARY OF US COMPANY). THE CONSIDERATION RECEIVED BY THE SERVICE PROVIDER IS IN THE FORM OF SHARES OF THE HOLDING COMPANY IN UNITED STATES OF AMERICA (PARENT COMPANY). THE SHARES VEST OVER A PERIOD OF 4 YEARS AND IS EXERCISABLE AT THE END OF 4TH YEAR. HOW DOES VALUATION AND TIME OF SUPPLY OF SERVICE APPLY IN THIS CASE???

Ans: Though this is a fact based query and one need to refer agreement of the same but as a concept the gst is payable on accrual basis rather on receipt. Since the services rendered to Indian subsidiary the same will be taxable as well. As far as valuation is concerned the value will be the FMV on the date of vesting of shares