Amendment in Sec. 67

[Admin TMI]

Question - What are proposed amendment in Sec. 67 which deals in valuation of services, in Finance Bill 2015 ?

[Admin TMI]

Section 67 prescribes for the valuation of taxable services. It is being prescribed specifically in this section that consideration for service shall include:

(a) all reimbursable expenditure or cost incurred and charged by the service provider. The intention has always been to include reimbursable expenditure in the value of taxable service. However, in some cases courts have taken a contrary view. Therefore, the intention of legislature is being stated specifically by this provision.

(b) amount retained by the distributor or selling agent of lottery from gross sale amount of lottery ticket, or, as the case may be, the discount received, that is the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such tickets.

AI Summary

Valuation of taxable services: reimbursable expenditures and lottery distributor retention included in taxable consideration under amended Section 67. Amendment to Section 67 clarifies that consideration for taxable services includes all reimbursable expenditure or costs charged by the service provider and amounts retained by a lottery distributor or selling agent from gross sales, including discounts equal to the difference between ticket face value and the agent's purchase price, thereby including these items in the value of service.