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TMI BlogBudget 2012-2013 - Amendments in Service Tax (Determination of Value) Rules, 2006X X X X Extracts X X X X X X X X Extracts X X X X ..... Budget 2012-2013 - Amendments in Service Tax (Determination of Value) Rules, 2006 - By: - C.A. Surender Gupta - Service Tax - Dated:- 23-3-2012 - - Budget 2012-2013 - Amendments in Service Tax (Determination of Value) Rules, 2006 Service Tax (Determination of Value) Rules, 2006 Nft 11/2012 ST (To be effective from Date to be notified after enactment of Finance bill 2012) S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. No. Particulars Old Provisions New Provisions 1. Composition scheme in Works Contract Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 Merged into Rule 2A of Valuation Rules Rate of Composition Tax on all works contract 4% upto 31-3-2012 4.8% w.e.f. 1-4-2012 Original work Rate of tax 12% of 40% Effecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve rate = 4.8% Works contract where value of land is included Rate of Tax = 12% of 25% Effective rate = 3.0% Other works contracts including completion and finishing services Rate of Tax = 12% of 60% Effective rate = 7.2% 2 Valuation method in works Contract Rule 2A Gross value minus of value of goods sold No change 3 Supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of food and drinks in a restaurant or as outdoor catering Determination of value of taxable - new Rule 2C Not existing However, exemption was granted through Exemption Notification no. 1/2006 ST dated 1.3.2006 Effective Rate w.e.f. 1.4.2012 New Valuation rule to determine the value of services involved. Value of Service involved in the supply of food or any other article of hu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... man consumption or any drink: Restaurant 12% of 30% = 3.6% Restaurant 12% of 40% = 4.8% Outdoor catering 12% of 50% = 6% Outdoor catering 12% of 60% = 7.2% 4. Manner of determination of Value Rule 3- where value is not ascertainable where the consideration received is not wholly or partly consisting of money - substituted where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such value is not ascertainable . 5. Inclusion in or exclusion from value of certain expenditure or costs Rule 5 - explanation to sub rule(1) services specified in sub-clause (zzzx) of clause (105) of section 65 of the Finance Act, 1994 ,- substituted telecommunication service 6. Inclusion in Value - .R ule 6(1) Not existing new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause(x) inserted in Sub rule(1) amount realised as demurrage or by any other name whatever called for the provision of a service beyond the period originally contracted or in any other manner relatable to the provision of service- included 7 Exclusion from value Rule 6(2) interest on loans - interest on,- (a) deposits; and (b) delayed payment of any considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for the provision of services or sale of goods; Not exisitng Accidental damages due to unforeseen actions not relatable to the provision of service. 8 Actual consideration to be the value of taxable service provided from outside India -Rule 7 omitted Omitted - - Scholarly articles for knowledge sharing authors experts professionals Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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