Experts please help me

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This query is : Resolved

Nitin (Querist)

12 July 2013 Manner of determination of value.– Subject to the provisions of section 67, the value of taxable service, where the consideration received is not wholly or partly consisting of money, shall be determined by the service provider in the following manner:–
(a) the value of such taxable service shall be equivalent to the gross amount charged by the service provider to provide similar service to any other person in the ordinary course of trade and the gross amount charged is the sole consideration;

I am so confused in it. please experts tell in easy language with example. if suppose consideration was 2nd hand scooter then how to calculate service tax on it?? who will tell the exact value of it? I am so confused

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)

12 July 2013 The Value of taxable service will be the gross amount which you normally to for that kind of service. Say u have provided some consultancy service for which u normally charge Rs.5000 to other party. So in this case, value of taxable service would be Rs.5000. Value of scooter is not meaning for this purpose.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

24 August 2013 You should know the basic principal of Service Tax. If you have charged VAt or CST then no service Tax can be charged. If no VAT or CST is charged then the same will fall under the category of service tax. There are some exceptional cases where there is contract or hotel bill which has adopted composite scheme then both VAT & Service Tax are payable.

The example as given by you is that of sale of goods where service tax is not applicable but if you charge brokerage on sale of scooter then it is under ST

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