TaxTMI 
TaxTMI 
What is taxable service means, is it the gross value of service rendered or value after abatement?
Experts opinion is requested
taxable service
13 Oct 2016 
9 Replies 
1637 Views Asked by
Taxable service valuation: abatement reduces taxable value for eligible services; delayed payment interest varies by situation.
The primary operative rule is that the taxable value of a service is ordinarily the gross amount received, determined under the valuation provisions and rules; however, for services specified in the abatement notification the taxable value is reduced by the notified percentage subject to conditions such as non availment of CENVAT credit and limitations on deduction of cost of goods sold, and a composition option exists for works contract services permitting discharge of liability by paying a fixed percentage of gross charges. (AI Summary)
The primary operative rule is that the taxable value of a service is ordinarily the gross amount received, determined under the valuation provisions and rules; however, for services specified in the abatement notification the taxable value is reduced by the notified percentage subject to conditions such as non availment of CENVAT credit and limitations on deduction of cost of goods sold, and a composition option exists for works contract services permitting discharge of liability by paying a fixed percentage of gross charges. (AI Summary)