Service tax input

Hi Deepti,

Rule 5 of the Service Tax (Determination of value) Rules, 2006 provides for inclusion in or exclusion from value, of certain expenditure or costs. If in the given case, if all the conditions under subrule (2) of the said rule is satisfied, the said charges (like steamer agent's charges) is to be excluded. Once the charges are excluded from the value, input credit cannot be claimed by the C&F Agent on such charges, but can be claimed by the client.

Regards,

Pradeep Kamath.