What is the deemed supply..

0
158

What is the deemed supply..

In GST, definition of Supply is inclusive but still Government has specify some transaction which are considered as supply irrespective of consideration is received or not.

Following activities are deemed supply:

  1. Permanent Transfer/ disposal of business assets: If ITC is already used for such assets and it is either disposed or transferred  for personal purpose with or without consideration, it shall be considered as to be “deemed supply”.
  2. 2. Principal supply of goods to his agent: Any agent undertakes supply of such goods without consideration on behalf of the principal shall also be considered as deemed supply.
  3. Agent supplying goods to his principal: Agent undertakes to receive such goods on behalf of the principal without consideration, it shall be treated as deemed supply.
  4. Supply of goods or services between related persons or distinct person as defined in section 25: where the supply is made in the ordinary course of business or for business purpose, it shall be treated as deemed supply.
  5. Barter System: where goods sold or services provided are settled by way of exchanging goods or services from other person.
  6. 6. Import of services from related person: if taxable person imported any services from related person or his establishment outside India, for business person is also treated as deemed supply.

 

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here