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Deemed Supply & Valuation

Article 10 states that the taxable person is deemed to have been made supply in certain cases:

1. Use of Asset (originally purchased as Taxable Goods) for other than economic activity (i.e for non business puposes)

2. Surrender of Assets (originally purchased as Taxable Goods)

3. Shifting the Use of Assets (originally purchased as Taxable Goods) for making taxable supplies to exempted supplies.

4. Disposing the Goods free of cost (samples , gifts etc)

5. Providing services for no consideration

Authority shall provide further rules and regulations in this regard.


Value of Deemed Supply

Article 23 states that value shall be purchase value or actual cost or goods or services supplied. If the same could not be determined , fair market value of such transaction.

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