Section 67 Of Finance Act
As per this Section,
If consideration received in money
Value of taxable service is Gross Amount Charged
(i.e.In simple language, Service tax is charged on gross amount charged from customer for the service)
Note:-
This amount may be paid to service provider or any other person on behalf of service provider
This may be paid at anytime (before,during or after) providing the service,
What is Gross Amount Charged
Gross Amount Charged means
Payment by cash, cheque, deduction from account/any payment by way of debit note/credit note and book adjustment.
In case of associated enterprises, It also includes any amount debited or credited in suspense account or any other account in books of person liable to pay service tax
When Gross Amount is inclusive of Service tax
Value shall be amount in addition to service tax as equal to gross amount charged
Value + Service tax =Gross Amount charged
Value=Gross Amount charged-Service tax
If consideration received partly in cash and partly in kind
Such amount in addition to service tax as equal to consideration
Value + Service tax =Total Consideration
i.e
Value + Service tax = Consideration in cash + Consideration in kind
Value = Consideration in cash + Consideration in kind-Service tax
If Consideration is not ascertainable (cannot be determined)
Where for the provision of service, the consideration is not ascertainable
Amount shall be, as may be determined for in prescribed manner
(as per Service tax (Determination of Value ) Rules,2006)
