TaxTMI 
TaxTMI 
TaxTMI 
Vide notification no. 24/2012 ST dated 6-6-2012, CBEC has amended the provision relation to determination of value of Taxable Services in certain circumstances as follows:
Service Tax (Determination of Value) Rules, 2006 [As amended is available on http://www.taxtmi.com]
Substitution of Rule 2A:- To prescribe
- First option to pay service tax on Value of services after deducting value of goods from the gross value.
- Second option to pay service tax at composite rate
- Pay ST on 40% value of original work
- Pay ST on 70% value of maintenance or repair or reconditioning or restoration or servicing of any goods
- Pay ST on 60% value of all other works contract
Amendment to Rule 2B:- Reference to clause (zm) and (zzk) deleted, as not required after introduction of negative list.
Insertion of new Rule 2C:- To prescribe rate of composition in case of activity at a restaurant or as outdoor catering as:
- Pay ST on 40% value in case of Restaurant.
- Pay ST on 60% value in case of Outdoor Catering.
Amendment to Rule 3:- Relating to the provisions where value is not ascertainable.
Amendment to Rule 5:- Relating to Inclusion in or exclusion from value of certain expenditure or costs, reference to clause (zzzx) removed.
Amendment to Rule 6:- Cases in which the commission, costs, etc., will be included or excluded:
- amount realised as demurrage related to taxable services shall be included.
- interest on delayed payment shall be excluded.
- taxes levied by any Government on any passenger travelling by air shall be excluded.
- accidental damages due to unforeseen actions not relatable to the provision of service shall be excluded.
- subsidies and grants disbursed by the Government, not directly affecting the value of service shall be excluded.
Deletion of Rule 7:- This rule was to prescribe Actual consideration to be the value of taxable service provided from outside India.
Service Tax (Determination of Value) Rules, 2006 [As amended]