Applicability of valuation of CHA service @ 15% in respect of a turnkey contract, Service Tax

[Nitin Daga]

Whether valuation of CHA service @ 15% in respect of a turnkey contract of import where lumpsum is charged (trade notice 5/97) is still applicable even after new Valuation of service rules have been notified in 2006

Posts / Replies

[Surender Gupta]

There are number of changes in the law since the trade notice referred in the query has been issued. Technically the service tax should be paid on whole value of the service however, till the trade notice is existing, you may get the salter of such trade notice subject to future risk of litigation.