Amends Service Tax (Determination of Value) Rules, 2006 - Section 66B - 11/2012 - Service Tax

Determination of value of works contract services prescribes valuation methods and specified service portions for contracts and catering.

Amendment prescribes that value of works contract service equals gross amount charged less value of transfer of property in goods, and lists service components (labour, sub-contractor payments, planning/design, hired machinery, consumables, establishment costs, related expenses and profit). Where segregation is not made, presumptive valuation applies: 40% of total for original works (25% if land included) and 60% for other works. For food and drinks supply, service value is 40% for restaurant supply and 60% for outdoor catering of the total amount; goods for human consumption under chapters 1-22 are not inputs for the service portion.