Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2015 gross amount receivable on services=400000
tds=2%
net amount received= 392000
what is the amount of service tax payable????
the service tax rate should be applied on 400000 or 392000????????????????/
explain along with the provision and rules and any latest notification

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 February 2015 Service tax applicable on gross value of work done(400000).
5. Value of Taxable Service

5.1 The valuation under service tax is governed by the provisions made under section 67 of the Finance Act, 1994

5.2 Value of taxable service shall be determined on the basis of one of the following:
a. consideration in money for providing the service.
b. consideration in money + consideration in any other form
c. consideration in any form other than money
The consideration in any form other than money shall be determined in a manner as prescribed.
(Refer section 67(1) of the Finance Act, 1994)

5.3 Service Tax (Determination of Value) Rules, 2006 have been notified which have the following salient features:

5.3.1 the value of taxable service shall be the gross amount charged for providing such service in ordinary course of trade and the gross amount charged is the sole consideration.

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