Valuation of Taxable Services

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s been provided or agreed to be provided. Here rate of exchange means determined in accordance with such rules as may be prescribed . When the gross amount charged in money shall be taken The gross amount charged on the bill shall be the value of taxable services provided the consideration is charged in money and no other consideration is being received in lieu of such money for such services. When the value of consideration is included in the money value Where the consideration is not charged wholly or partly in money then the value of taxable services shall be: - Money value plus value of consideration other than money. Examples of considerations other than money 1 Services are provided in lieu of other se .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service. Rejection of value The Central Excise Office shall, after providing reasonable opportunity of being heard, determine the value in accordance with the provisions of the Act and these rules. Meaning of Gross Amount Section 67(3) provides that, the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. Meaning of Consideration Explanation (a) to the Section 67 states that, [ consideration includes- (i) any amount that is payable for the taxable servi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ₹ 1, 00,000 for the services rendered by him, than the value of taxable service shall be calculated as: 1,00,000 x 100 Value of taxable services = ------------------ (100 + rate of tax) 1,00,000 x 100 Where effective rate of tax is 15% (inclusive of cess) = ------------------ 115 Meaning of Gross Amount Charged Explanation (c) to the Section 67 states that, gross amount charged includes pa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X