2. The value of supply in relation to the purchase or sale of foreign currency, including money changing shall be determined by the supplier in the following manner:
Option -I
a) For a currency, when exchanged from, or to, Indian Rupee, (INR) - The value shall be equal to the difference in the buying rate or the selling rate as the case may be, and the RBI reference rate for that currency, at that time multiplied by the total units of currency.
b) Provided that in case where RBI reference rate for a currency is not available - The value shall be 1% of the gross amount of Indian Rupees provided or received by the person changing the money.
c) Provided further that in case where neither of the currencies exchanged is Indian Rupees - The value shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any the two currencies into Indian Rupee on that day at the reference rate provided by the RBI.
Option -II
At the Option of Supplier, the value in relation to the supply of foreign currency, including money changing, shall be deemed to be-
a) For an amount upto Rs 1 lakh - 1% of the gross amount of currency exchanged (Subject to minimum of Rs 250.)
b) For an amount exceeding Rs 1 lakh and upto Rs 10 lakhs - Rs 1000 plus 0.5% of the gross amount of currency exchanged and
c) For an amount exceeding Rs 10 lakhs - Rs 5,500 plus 0.10% of the gross amount of currency exchanged (Subject to maximum of Rs 60,000)
Lock in Period - Provided also that a person supplying the services may exercise the option to ascertain the value in terms of Option -II for a financial year and such option shall not be withdrawn during the remaining part of that financial year.
3. Air Travel Agent - The value of supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of:
a) 5% of the basic fare in case of domestic bookings and
b) at the rate of 10% of the basic fare in the case of international bookings of passage for travel by air.
4. Life Insurance Business - The value of supply of services in relation to life insurance business shall be-
a) If such an amount is intimated to the policy holder at the time of supply of service - The gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of the policy holder.
b) In case of single premium annuity policies other than (a) - 10% of single premium charged from the policy holder.
c) In all other cases - 25% of the premium charged from the policyholder in the first year and 12.5% of the premium charged from the policyholder in subsequent years.
Provided that nothing contained in this sub-rule shall apply where the entire premium paid by the policy holder is only towards the risk cover in life insurance.
5. Sale and Purchase of Second Hand Goods - Where a taxable supply is provided by a person dealing in buying and selling of second hand goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit (ITC) has been availed on the purchase of such goods,
The value of supply shall be the difference between the selling price and the purchase price and where the value of supply is negative,it shall be ignored.
Goods Repossessed - Provided that purchase value of goods repossessed from a defaulting borrower, who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be the purchase price of such goods by the defaulting borrower reduced by 5% points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossessions.
6. Voucher/Coupon - The value of a token, or a voucher, or coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon or stamp.
7. Notified Service Provider, where ITC availed - The value of taxable services provided by such class of service providers as may be notified by the Government, on the recommendations of the Council, as referred to in paragraph 2 of Schedule I of the said Act between distinct persons as referred to in section 25, where input tax credit, shall be deemed to be NIL.
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