https://www.taxtmi.com/caselaws?id=799093 Service-tax valuation for renting of immovable property is confined to the gross consideration charged by the service provider for the taxable service. Renovation and upgradation costs independently incurred and capitalised by the service recipient, paid directly to third parties, and neither controlled by the provider nor shown to be consideration or a condition of renting, fall outside the taxable value. Rule 3(b) of the Service Tax (Determination of Value) Rules, 2006 cannot expand the statutory valuation base under the Finance Act, 1994. Tax liability therefore remains limited to the lease consideration actually received, and penalties linked solely to an enhanced valuation demand do not survive. en-us Tue, 14 Jul 2026 00:00:00 +0530 Thu, 17 Sep 2026 07:52:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799093 Service-tax valuation for renting of immovable property is confined to the gross consideration charged by the service provider for the taxable service. Renovation and upgradation costs independently incurred and capitalised by the service recipient, paid directly to third parties, and neither controlled by the provider nor shown to be consideration or a condition of renting, fall outside the taxable value. Rule 3(b) of the Service Tax (Determination of Value) Rules, 2006 cannot expand the statutory valuation base under the Finance Act, 1994. Tax liability therefore remains limited to the lease consideration actually received, and penalties linked solely to an enhanced valuation demand do not survive. Case-Laws Service Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799093