service tax consideration

Meghana Belawadi (student) (35 Points)

20 April 2011  

 

SEC. 67. Valuation of taxable services for charging Service tax

(1) Subject to the provisions of this Chapter, service tax chargeable on any taxable service with reference to its value shall,—

(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;

(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration;


can someone please explain what this means..?

My doubt is this:

If, for a service provided, money received is Rs.10,000 and some gift, lets say watch for Rs.2000, then the value of taxable service shall be:

(a) 10,000

(b) 12,000