TaxTMI 
TaxTMI 
Whether considered as Non Monetory Consideration ?
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....hether considered as Non Monetory Consideration ?<br> Query (Issue) Started By: - paresh ayadi Dated:- 15-6-2016 Last Reply Date:- 21-6-2016 Service Tax<br>Got 4 Replies<br>Service Tax<br>Sir, We have hired security agency for our company We apart from regular monthly payments provide them facility of "cars for official purpose, quarter for residence , payment of mobile bills.." We ar....
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....e paying Service Tax under RCM (security agencies) on monthly payment and monetary value of residance However we are not adding "car rental charges and mobile bills" under non monetary consideration as we are paying service tax under RCM for car rentals and mobile post paid bills" Whether our practice is confirming with service tax rules... Reply By KASTURI SETHI: The Reply: Car....
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.... rental charges, mobile charges, residential charges cannot be called non-monetary consideration. Reply By paresh ayadi: The Reply: Sir, Can you please guide further ? Reply By KASTURI SETHI: The Reply: See the definition of 'Consideration' under Section 67 of the Finance Act. Service Tax is payable on 'Gross Amount Charged'. No deduction/abatement is admissible from the gross....
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.... amount charged to arrive at the taxable value. Reply By Ganeshan Kalyani: The Reply: Sir, if car facility is given to security agency then you would be adjusting the value of such benefit from their bill. As a result you only pay amount and thereby pay tax on net amount. And separately for rent-a-car service you also pay service tax under reverse charge. Please elaborate your query a little mor....
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....e. Thanks.<br> Discussion Forum - Knowledge Sharing ....