TaxTMI 
TaxTMI 
A service receiver has received technical consultancy services from abroad. What should be the taxable value for service tax - ? The bill amount or the bill amount inclusive of TDS(withholding tax).
taxable value under service tax
N R CONSULTING N R CONSULTING
Taxable Value for Foreign Technical Consultancy Must Include TDS, Use Customs Exchange Rate, per Sections 67 & 66A. A discussion on a forum addressed the taxable value for service tax on technical consultancy services received from abroad. The primary query was whether the taxable value should be the bill amount alone or include withholding tax (TDS). Responses clarified that the taxable value should be the foreign currency value at which the bank makes the remittance, plus TDS. It was emphasized that service tax is charged on the gross amount, including the TDS, as per Section 67 and Section 66A. The exchange rate used should be the one notified by Customs, not the bank's rate. (AI Summary)