https://www.taxtmi.com/caselaws?id=788394 Valuation of service portion in works contracts is governed by Rule 2A(1) of the Service Tax Valuation Rules, which requires deducting the value of goods transferred; separately invoiced material subject to VAT/KVAT is excluded from taxable service value and service tax must be accounted only on the service component. Point of Taxation Rules link tax liability for continuous supplies to contract-stage completion, issuance of invoices, or receipt of consideration; notional income recognised in financial statements for uncompleted services does not constitute receipt or completion for tax purposes. On these grounds, differential demands based on higher financial-account figures are unsustainable and are to be dropped. en-us Thu, 11 Dec 2025 00:00:00 +0530 Sat, 21 Mar 2026 08:29:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788394 Valuation of service portion in works contracts is governed by Rule 2A(1) of the Service Tax Valuation Rules, which requires deducting the value of goods transferred; separately invoiced material subject to VAT/KVAT is excluded from taxable service value and service tax must be accounted only on the service component. Point of Taxation Rules link tax liability for continuous supplies to contract-stage completion, issuance of invoices, or receipt of consideration; notional income recognised in financial statements for uncompleted services does not constitute receipt or completion for tax purposes. On these grounds, differential demands based on higher financial-account figures are unsustainable and are to be dropped. Case-Laws Service Tax Thu, 11 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788394