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 andSUN]

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 by24/2012.

[YAGAY andSUN]

yes, such supplies will be includible.

[Harishanker Patel]

Sir,

Kindly explain in how & where it is includable.

[YAGAY andSUN]

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

AI Summary

Debate on Including Free Supplies in Works Contract Valuation Under Rule 2A, Clause (i) as Amended by Notification 24/2012. A discussion in a forum revolves around whether the value of electricity and other materials supplied for free by a service recipient should be included when determining the value of works contract services under clause (i) of rule 2A, as amended by notification 24/2012. One participant suggests using generally accepted accounting principles for valuation. Another participant confirms that such supplies should be included and refers to a specific section of the Taxation of Services guide for further clarification. The conversation seeks to clarify the inclusion criteria for materials in service tax calculations.