Inclusion of fuel cost in calculating taxable service value

Gross Amount charged by Service Provider for providing Hired Vehicle is Rs. 28000/-. As per agreement, this amount is exclusive of service tax.

The fuel is provided by us (service receiver) which costs is Rs. 6000/-. The Service Provider is SSI.

What is our liability for payment of Service Tax? Should value of fuel provided by us be included while calculating our Service Tax liability?

 

Replies (1)

You need to include fuel cost in the taxable value.

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