Amendment in Sec. 67, Service Tax

[Admin TMI]

Question - What are proposed amendment in Sec. 67 which deals in valuation of services, in Finance Bill 2015 ?

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[Admin TMI]

Section 67 prescribes for the valuation of taxable services. It is being prescribed specifically in this section that consideration for service shall include:

(a) all reimbursable expenditure or cost incurred and charged by the service provider. The intention has always been to include reimbursable expenditure in the value of taxable service. However, in some cases courts have taken a contrary view. Therefore, the intention of legislature is being stated specifically by this provision.

(b) amount retained by the distributor or selling agent of lottery from gross sale amount of lottery ticket, or, as the case may be, the discount received, that is the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such tickets.