17 May 2014
Please refer Section 67 which defines the consideration. It reads as "Consideration includes ANY amount that is payable for the taxable service provided or to be provided"
Further pl refer to MF(DR) circular no B1/6/2005 -TRU dt 27.7.2005, service tax to be charged on full amount of consideration for supply of manpower, whether full time or part time. The value includes staff costs from the recipient e.g. salary and other contribution. Even if the salary is paid directly by service receiver to the individual workman , it will still form part of value of taxable services.
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