Specified Value - Money changing services - Service Tax Practice Manual / Ready Reckoner - Service Tax

Rule 2B Money changing services Rule 2B of the Service Tax (Determination of Value) Rules, 2006 Value to be determined in the following manner: 1. When RBI Reference Rate is available: Buying/ selling rate Minus RBI Reference Rate Taxable Value (TV) = [(i) (ii)] as Multiplied by total units of currencies. Thus, tax @ 14% on Taxable Value (TV) 2. When RBI Reference Rate is not available: Taxable Value (TV) = 1% of the gross amount of Indian rupees. Thus, Tax @ 14% on Taxable Value (TV) 3. When neither of the currencies is Indian rupees: Taxable Value (TV) = 1% of of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI. Thus, Tax @ 14% on Taxable Value (TV) Also Refer: CIRCULAR NO. 180/6/2014-ST dated 14-10-2014 Valuation aspect from the Education Guide issued by the CBEC