Are subsidies received from Private Enterprises on procurement of eco-friendly capital goods required to be included in the transaction value

Subsidies directly linked to the price of the supply are to be included in the transaction value, where such subsidies are not provided by the Central/ State Governments. Where it can be established that the price of the supply is not directly linked to the subsidy given on capital goods, the same is not required to be included.

(ICAI FAQ PUBLICATIONS 06-09-2017 VALUE OF TAXABLE SUPPLY: FAQ NO. 58)