When Value is not ascertainable

Value of taxable service shall be gross amount charged for similar service if

Such service is in ordinary course of business


Gross amount charged is sole consideration


Value of similar service cannot be ascertained

In this case, service provider shall determine the equivalent value of such consideration.

However, this value cannot be less than cost of provision of such service


Exam Questions

Question 2
Rohit, an advocate, rendered professional advice to its client XY Ltd. on the matters relating to
tax optimization. As a consideration for the said services, XY Ltd. gave a souvenier to Rohit.
The said souvenier was an artifact especially designed and made by the craftsmen as per the
specifications suggested by XY Ltd.
Rohit contends that he need not pay service tax on the services provided by him as value of
thereof could not be ascertained. Is Rohit’s contention correct? Critically examine the case.
Assume that Rohit is not entitled to the exemption available to small service providers.

View Answer

Learn in your speed, with individual attention - Teachoo Maths 1-on-1 Class

Ask a doubt
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.