Draft Valuation Rules - Service Tax - F.No.334/6/2006

Draft Valuation Rules DATE 01/03/2006 Service Tax (Determination of Value) Rules, 2006 - feedback invited- reg At present, valuation of taxable services are governed by section 67 of the Finance Act, 1994 which provides that the value of any taxable service shall be the gross amount charged by the service provider for such service provided or to be provided. The existing provision covers only situations where the consideration for the taxable service is received in money terms. There is no specific provision to determine taxable value where the consideration is wholly or partly not in money terms or where the consideration is in money terms but is not known explicitly. 2. In budget 2006, proposal has been made in the Finance Bill, 2006 to substitute the existing section 67 of the Finance Act, 1994 with a comprehensive provision and also specifically include provisions for determining taxable value where the consideration is wholly or partly not in money terms or where the consideration is in money terms but is not known explicitly and to notify rules for prescribing the manner of determination of taxable value 3. Draft Rules required to be issued this section is attached. Tax Research Unit, Department of Revenue, Ministry of Finance solicits the considered views/ /comments/suggestions on the above mentioned draft rules from all concerned. The same may be kindly sent to the following address, preferably by email, not later than 31/3/2006. R. Sriram Deputy Secretary (TRU) Ministry of Finance, Department of Revenue 146 F, North Block New Delhi Email : tru.finmin@ gmail.com F.No.334/6/2006-TRU Note: - To see the draft rules please click the link Rules, than click Service Tax