Amends Service Tax Valuation Rules, 2006 Determination of value of services involved in the execution of a works contract

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....NARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue)  New Delhi, the 22^nd May, 2007     1 Jyaistha, 1929 (Saka) Notification No. 29/2007-Service Tax G.S.R. (E). In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Gov....

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....determined by the service provider in the following manner:- (i) Value of works contract service determined shall be equivalent to the gross amount charged for the works contract less the value of transfer of property in goods involved in the execution of the said works contract. Explanation.- For the purposes of this rule,- (a) gross amount charged for the works contract shall not includ....

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....fit earned by the service provider relatable to supply of labour and services; (ii) Where Value Added Tax or sales tax, as the case may be, has been paid on the actual value of transfer of property in goods involved in the execution of the works contract, then such value adopted for the purposes of payment of Value Added Tax or sales tax, as the case may be, shall be taken as the value of trans....