Question

    A hotel provides a 4-D/3-N package with the facility of

    breakfast. This is a ..........
    A Mixed supply Correct Answer Incorrect Answer
    B Composite supply Correct Answer Incorrect Answer
    C Both mixed and composite supply Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    In this scenario, where a hotel provides a 4-day/3-night package with the facility of breakfast, it is considered a composite supply. A composite supply consists of two or more taxable supplies of goods or services that are naturally bundled and supplied together in the ordinary course of business. In this case, the hotel stay and breakfast are typically provided together as a single package, and they are naturally bundled in the offering to the customer.

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