Service under Business Auxillary Service

[MANASH MUKHERJEE]

A company having registration under Business Auxiliary Service is selling ' High Security Number Plates' to their clients and paying service tax on the fitment charge collected by them from the clients. The actual value of the goods (i.e. the number plate) is not taken into consideration while calculating service tax. My question is weather the Service tax valuation is properly been done. Moreover they are paying VAT on the value of the goods separately.

AI Summary

Company's Service Tax on Number Plate Fitment Charges Correct; Valuation Rules Apply Only When Costs Unknown. A company registered under Business Auxiliary Service is selling high-security number plates and paying service tax on the fitment charges collected, excluding the actual value of the plates from the service tax calculation. They also pay VAT on the goods' value separately. The query concerns whether the service tax valuation is correct. Respondents agree that the service tax is appropriately calculated since it applies to the service provided, and the valuation rules are applicable only when the cost of materials and service value are unknown. The consensus is that the company is compliant with service tax regulations.