Service Tax on Free issue of HSD

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author (Querist)
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15 December 2010 A Contractor executing Rs. 10 crores works as a Minning for extraction of stone for construction of road. HSD was issued by the main contractor with free of cost worth Rs. 5 Crores will be taken as gross value Rs. 15 Crores or 10 Crores for discharge of Service Tax Liability in both the scheme for subcontractor.
kindly clarify

Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 December 2010 The supply of HSD is nothing but non monetary consideration.

The price of the said HSD has to be added to the monetary consideration to arrive at the taxabla value.

Rs.15/- Crore.