Finance Act, 2006 (No. 21 0f 2006) - regarding

Service tax valuation rules require gross consideration, include non monetary consideration, and reverse charge applies to services received from abroad.

Service tax is levied at twelve percent plus education cess, with valuation under section 67 requiring gross amount charged or, for non monetary consideration, the money equivalent or value of similar services; declared values must not be below cost and may be verified by the department under prescribed safeguards. Reimbursable expenditure incurred as a pure agent may be excluded if rule 5(2) conditions are met. Section 66A and accompanying rules make recipients taxable under a reverse charge mechanism for services provided from outside India, with specified categories and export rules defining when services qualify as exports.