value of electricity free supplied by service receipient

[Harishanker Patel]

value of electricity free supplied by service receipient should be add or not while determing the value of works contract service under clause (i) of rule 2A of valuation rule as ammended by 24/2012.

[YAGAY and SUN]

It may be determined in accordance with the generally accepted accounting principles.

[Harishanker Patel]

Dear Sir,

My question is for valuation of works contract service under clause (i) of rule 2A of valuation rule as ammended by 24/2012.

Basically I want to know that whether value of materials (Vatable & non vatable both),Consumables etc supplied by service receipient should be add or not while determinating the value  of works contract service under clause (i) of rule 2A of valuation rule as ammended by 24/2012.

[YAGAY and SUN]

yes, such supplies will be includible.

[Harishanker Patel]

Sir,

Kindly explain in how & where it is includable.

[YAGAY and SUN]

Please check para 10.1.6 of the Taxation of Services:- An Educational Guide.

AI Summary

Valuation of works contract service: include recipient supplied electricity and materials in taxable value per valuation rules.
Valuation of works contract service under clause (i) of rule 2A must include value of materials and consumables supplied by the service recipient, including electricity supplied free; such inclusions (vatable and non vatable) are to be determined in accordance with generally accepted accounting principles, with further procedural detail in the published guidance paragraph.