Section 12: Taxable Value

1) Except as otherwise provided in this Act, in cases where only money is consideration, the taxable value shall be the price which the supplier takes from the recipient.

2) The following amounts shall be included in the taxable value:

(a) The amount of all expenditures relating to transportation and distribution which was borne by the supplier in connection with the transactions, and the amount of profit; and

(b) Excise and all other tax amounts save the tax imposed under this Act.

Explanation: For purpose of this Clause, “other tax amounts” means such tariffs, fees and charges as specified by the yearly Financial Act.

3) Taxable value shall not be included in the amount of discount, commission or other similar commercial rebate granted on value in supplying goods or services.

4) The taxable value of any goods or services exchanged or bartered shall be equal to the market value of the goods or services so exchanged or bartered.

5) Except as otherwise provided in this Act, the taxable value for any imported goods shall be its customs value including transportation, insurance, freight, commissions of agents and other persons, plus customs duties, countervailing duties, plus any other taxes if levied on imports, except the value-added tax.

6) If the value of any goods or services is found to be much lower than the prevailing market value, the taxable value of such goods or services shall be equal to the market value.

7) The taxable value of goods or services supplied for partial consideration shall be equal to the market value.

8) The deposit, given in respect of goods or services, shall not be held to be taxable value until the supplier applies the deposit as a consideration for the supply.