Question

Explain the difference between the market value and recipient value approach to valuing noncash government benefits in the measurement of the poverty rate. Which valuation yields a lower poverty rate and why?

Answer 1

Under GST system, the following information explains about Transaction value and Open Market Value.

As per GST terms,   Transaction value is the price actually paid or payable for the said supply of goods and/or services between un-related parties and price is the sole consideration. Open Market Value of a supply of goods or services or both means the full value in money, (excluding GST & cess) where the supplier and the recipient of the supply are not related and price is the sole consideration, to obtain such supply at the same time when the supply being valued is made.

The details about Transaction value and Open Market Value with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Transaction value and Open Market Value, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, we give below web links on Transaction value and Open Market Value separately below. You may kindly read the below links to know more about Open Market Value and Transaction value.