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The concept of adding the value of free goods or services supplied by customer used in manufacture of excisable goods is not new in Central Excise. The principle that VAT and service tax are mutually exclusive adds to the confusion. [Imagic Creative – 2008(9) STR 337 (SC)]  Section 67 emphasizing on the gross value of service has also undergone change in this Finance Act- 2015.

Valuation of services under service tax law has always been subject matter of interpretation and disputes. In...

The union budget increased the rate of service tax 12.36% to 14% wef 01.06.2015. The education cess and secondary higher education cess subsumed in the revised rate of Service Tax. The rate was increased to augment revenue and to prepare the tax payer for paying higher rate of tax in GST regime.

The emphasis of article is to bring out the clarity on rate of tax applicable for ongoing works. Before going further it is very interesting to note that past history on ‘applicable rate of...

New service tax rate of 14% is effective from June 1, 2015. This article is intended to provide you with insights of how to deal with change in rate and which scenarios old rate shall prevail and when a new rate has to be applied. Few of the practical questions posed could be as under: 

• What if invoice is issued before the change of rate but payment is received after the change in rate. Which rate needs to be applied? 
• What should be the rate applied in case service is provided...

"Service” has been defined as an activity between two persons. In normal course the principle of “mutuality” is applied and there can be no tax when one deals with oneself. However an exception has been created in the Service tax law for dealing with a branch outside India.  

The Place of Provision of Services Rules 2012 has deemed certain locations as the place of provision. This depends on the nature of activity. Where the place is outside India, no service tax is...