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Gac under st rules 1994

Ayush Mahajan (student) (25 Points)

30 January 2015

How to calculate Gross Amount Charged under service tax rules 1994?

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Aditya RVS (Practice) (221 Points)
Replied 01 February 2015

Please provide some figures or situation to illustrate better.

However, the Sec. 67 of the Finance Act, poviding for valuation of services, is enclosed herewith, for your ready reference:

11[Valuation of taxable services for charging service tax.

67 . (1) Subject to the provisions of this Chapter, where service tax is chargeable on any taxable service with reference to its value, then such value shall,—

(i)		in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii)		in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration;
(iii)		in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.

(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) 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.

(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

Explanation.—For the purposes of this section,—

(a)		"consideration" includes any amount that is payable for the taxable services provided or to be provided;
(b)		12[***]
(c)		"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 13[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].]