rule 32 (7) pls explain

[satbir singhwahi]

(7) The value of taxable services provided by such class of service providers as may be notified by the Government, on the recommendations of the Council, as referred to in paragraph 2 of Schedule I of the said Act between distinct persons as referred to in section 25, where input tax credit is available, shall be deemed to be NIL.

Sir

PLs explain this.''where input tax credit is available, shall be deemed to be NIL.''

[DR.MARIAPPAN GOVINDARAJAN]

Schedule I give the list of activities that are to be treated as supply even if made without consideration.

Para 2 of the Schedule provides that supply of goods or services or both between related person or between distinct persons as specified in section 25, when made in the course or furtherance of business will be a supply even if it is made without consideration.

Rule 32(7) provides that the above said services provided by service providers as notified by the Central Government on the recommendations of the Council the value of taxable services shall be treated as NIL, even input tax credit is available.

AI Summary

Valuation of taxable services treated as nil where input tax credit is available for notified service providers. Rule 32(7) provides that for classes of service providers to be notified by the Government, the value of taxable services supplied between related or distinct persons (deemed supplies under Schedule I paragraph 2 made in the course or furtherance of business) shall be deemed nil where input tax credit is available.