Service Tax (Determination of Value) Rules, 2006 - 012/2006 - Service Tax

Determination of Value rules define valuation for non monetary consideration and set pure agent exclusions for service tax liability.

Where consideration for a taxable service is not in money, value is the gross amount ordinarily charged for similar services or an equivalent money value not less than the cost of provision; the Central Excise Officer may verify and fix value after notice and hearing. Expenditure incurred by the provider is included in value unless all pure agent conditions are met (contractual agency, no title or use, separate invoice indication, recovery of actual amounts, recipient liability and authorization, and procurement being additional to provider's services). Certain commissions and reimbursements are included, while specified collections are excluded. Services from outside India are valued at actual consideration, including partly performed services.