Example given for service taxing in case of consideration is partly in money and partly in any other form
This is the example given in PCC studymaterial
Example : Mr. X, a company secretary provides taxable professional services to one of its
clients. In lieu of rendering such services, Mr. X charges Rs.10,000 from its client and
also asks its client to give him a Law book worth Rs.2,360. The total consideration in this
case will be Rs.12,360 and the value of the taxable service shall be Rs.10,000[ 12360*100/112.36] and Rs.2,360 shall be the service tax payable.
calculation given in bracket will give only 11000 but how the tax came to be 2360??????
CAclubindia
