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Valuation of taxable service for charging service tax

Tejas Jasoriya (CPT clear) (284 Points)

14 September 2015

Valuation of taxable service is Gross amount amt charged by service provider. Does this gross amt includes service tax also??? Plse reply

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 14 September 2015

Value of taxable service cannot include service tax portion. You need to reduce the ST component from the gross amount to arrive at the taxable service component.

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jaya krishna (Chartered Accountant) (262 Points)
Replied 14 September 2015

Generally service Tax separately charged from the customers if you are not charging service Tax separately it means gross amount includes service Tax also.. You can segregate service Tax and taxable value and pay service Tax on taxable value

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 15 September 2015

Valuation is to be done on the basis of gross amount charged for providing such service.ST is charged on the gross amount received and can not be part of the gross.