Valuation of Taxable Service

Valuation of the services provides the methodology of arriving at the service amount on which the applicable Service Tax to be charged.

Value of the taxable service is determined as under

• Consideration fully in Money: The gross amount charged by the service provider for such services provided/to be provided

• Consideration not in Money: The Equivalent Value of the Non monetary consideration.

• Consideration partly in money and partly in other form: Amount charged monetarily and the Equivalent value of the Non monetary consideration

• Consideration not Ascertained: Valuation based on the Valuation Rules (as per section 67, Service Tax (Determination of value) rules, 2006

• Consideration Inclusive of Tax: Value of taxable service will be such amount,  in addition of Service Taxpayable is equal to Gross amount charged.

Example: Royal Agency provides taxable service for Rs. 1,32,360 inclusive of Service Tax@ 10.30%. The taxable service value shall be computed as:Taxable Service Value (1,20,000)  = 1,32,360 X (100/110.30)