All expenditure incurred by Service provider will be included in Value of Taxable Service

It does not matter whether they are separately shown in invoice or not


Explanation. - For the removal of doubts, it is hereby clarified that for the value of the telecommunication service, value shall be the gross amount paid by the person to whom telecommunication service is actually provided.

Hence the amount charged from final customer is to be taken, not the amount charged to distributor in case  of telecommunication service(mobile/telephone service) 



If expenditure is incurred as pure agent and fulfills prescribed conditions,

then it will not be included in taxable value


  1. Service Tax
  2. Valuation of Taxable Service

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.