As per Amendment ,an Inclusive Definition of Consideration is introduced.

It means that apart from the normal meaning of consideration,it also includes the following


Consideration includes

1.Amount paid for consideration for service

(This may be in cash/kind/or both)


2.Any reimbursement of expenses

(if it does not fullfills prescribed conditions)


3.In case of Lottery Distributor/Selling Agent

Difference between Face Value of Tickets and Purchase price of tickets

 (This may be in form of commission,discount or any other Amount Retained by Lottery distributor)



Bare Act

As per Explanation to section 67

 “(a) consideration includes–
(i) any amount that is payable for the taxable services provided or to be provided;

ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service,
except in such circumstances, and subject to such conditions, as may be prescribed;

(iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket.



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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.