9.1 A new rule (2B) has been inserted vide Notification 2/2011-ST to prescribe the value of service rendered in relation to money changing. The details are explained at Annexure B. This amendment shall come into force on 01.04.2011.  

9.2 An explanation has been added after rule 5(1) of the Service Tax (Determination of Value) Rules, 2006 clarifying that for the purpose of telecommunication service [Section 65(105) (zzzx)] the value shall be the gross amount paid by the person to whom the service is provided by the telegraph authority. Thus in case of service provided by way of recharge coupons or prepaid cards or the like, the value shall be the gross amount charged from the subscriber or the ultimate user of the service and not the amount paid by the distributer or any such intermediary to the telegraph authority. This amendment shall come into force on 01.03.2011.  

Valuation of telecommunication services clarified as gross amount charged to the subscriber, including recharge and prepaid transactions. For telecommunication services the taxable value is the gross amount paid by the person receiving the service; where service is supplied via recharge coupons, prepaid cards or similar instruments, the value shall be the gross amount charged to the subscriber or ultimate user and not the amount paid by a distributor or intermediary to the telegraph authority.