Valuation of Taxable Service
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 October 2010
What will be the value of Taxable Service:-
1. Mr. X, a Professional provides service to a Company. He incurrs Rs. 10,000.00 towards Travelling Expenses, which has been paid by the Company.
Mr. X raises a Bill of Rs. 50,000.00 for his professional services.
On what amount should Mr. X charge Service Tax?
1. Mr. X, a Professional provides service to a Company. He incurrs Rs. 10,000.00 towards Travelling Expenses, which has been paid by the Company.
Mr. X raises a Bill of Rs. 50,000.00 for his professional services.
On what amount should Mr. X charge Service Tax?
10 October 2010
Rule 5(1) of the Service tax (Determination of Value )Rules,2006 says as follows:-
Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service.
In view of the above, ST is to be levied on Rs.60,000/-.
Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service.
In view of the above, ST is to be levied on Rs.60,000/-.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- Is any professional CA is here please reply
- EPF FULL & FINAL RULES IN 2026
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Rental income gst and it purpose
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
