Clarification on technical issues relating to taxation of services under the Finance Act, 1994 – Regarding.

Service tax classification and valuation clarified: codified departmental positions on taxable services, exemptions, exports and CENVAT consequences.

Circular consolidates and codifies departmental positions on service tax technical issues, superseding prior clarifications except specified statutory orders. It prescribes a coding system for issue identification and states departmental views do not override law. The circular clarifies scope and classification (examples include courier, consulting engineer, manpower recruitment, mandap keeper, and business exhibition services), valuation principles (exclusion of non consideration amounts, treatment of spare parts), export/import of service rules (composite international journey valuation), CENVAT credit limitations, composition scheme constraints, exemption treatment for statutory functions, and taxability of sub contractors and certain financial and port services.