Few points on Service Tax- Valuation Rules.

01.  Where the consideration is only money, then gross amount charged.

02.  In case where consideration is not or partly for money, then the monetary value of service.

03.  In case value not ascertainable, then in the prescribed manner.

04.  Electricity provide free of cost to service provider is not a consideration. Refer, Inox Air Products Limited.

05.  Rate of exchange of rate of service tax – when the taxable services has been provide or agreed to be provided.

06.  Forex Profit / loss is not taxable for service tax.

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7.  There will be a mismatch between AS-11 value and Service tax forex value as AS-11 follows bank rate and Service tax follows internal rate.

08.  Rule for works contract.

(a)     Gross amount charged minus value of assets transferred.

(b)   Otherwise for original works – 40% , maintenance - 70% & other 60%.

09.  Tax is applicable on reimbursement also.

10.  Service tax is not applicable on value of goods sold by service provider.

11.  Also Service tax not applicable on interest component.