TaxTMI 
TaxTMI 
Valuation of Taxable Services
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....provided. Here rate of exchange means determined in accordance with such rules as may be prescribed. When the gross amount charged in money shall be taken The gross amount charged on the bill shall be the value of taxable services provided the consideration is charged in money and no other consideration is being received in lieu of such money for such services. When the value of consideration is included in the money value Where the consideration is not charged wholly or partly in money then the value of taxable services shall be: - Money value plus value of consideration other than money. Examples of considerations other than money 1 Services are provided in lieu of other services or material or facilities provided by the receiver....
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....of charging service tax on the said service. Rejection of value The Central Excise Office shall, after providing reasonable opportunity of being heard, determine the value in accordance with the provisions of the Act and these rules. Meaning of Gross Amount Section 67(3) provides that, the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. Meaning of "Consideration" Explanation (a) to the Section 67 states that, ["consideration" includes- (i) any amount that is payable for the taxable services provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the c....
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....(100 + rate of tax) 1,00,000 x 100 Where effective rate of tax is 15% (inclusive of cess) = ------------------ 115 Meaning of "Gross Amount Charged" Explanation (c) to the Section 67 states that, "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise ============== Guidance Note 8 of the Education Guide [CBEC] - Valuation Wit....