SERVICE TAX- CONSIDERATION

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 IF THE SERVICE TAX IS PROVIDED WITHOUT CONSIDERATION, IS SERVICE TAX APPLICABLE HERE???

A. WHAT IF THE VALUE OF SERVICE PROVIDED IS ASCERTAINABLE?
B. WHAT IF THE VALUE OF SERVICE PROVIDED IS NOT ASCERTAINABLE?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 November 2010 3. 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;
(b) where the value cannot be determined in accordance with clause (a), the service provider shall determine the equivalent money value of such consideration which shall, in no case be less than the cost of provision of such taxable service.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 clear sir. Thanks a lot

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