service tax consideration

 

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


Replies (3)

you should consider only Rs.10000/-

ok..:)

i just referred TN Manoharan book and this is what i read:

Consideration in the form of

Kind                      - money value of consideration in kind

Partly in money  - aggregate of consideration in money and money value of consideration in kind

 

:( :( help!!

Meghana

Your answer is right.

Meaning of  provision is if consideration is received in kind than it needs to be converted into equivalent money value. And this needs to be added to consideration received in money if any

 

Regards

Dayananda

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