Pradeep Jain - Chartered Accountant

Dear Sir, A flat is allotted to a tenant in lieu of tenancy rights that he was holding in respect of that property. He is only charged for the following: 1.) Construction Cost 2.) Market Value for excess area allotted over and above his tenancy rights. Whether service tax would be charged to him on only construction cost & market value of excess area OR Stamp Duty Value at the time of transfer of property OR on value of flats sold to similar buyers at or about the same time. Secondly in case the building is 50% complete at the date of entering into an agreement, then whether service tax is leviable on 100% value of the agreement or only 50%.

Service tax is chargeable on value of service i.e. on consideration and as per Explanation (a) to section 67 of the Act “consideration” includes any amount that is payable for the taxable services provided or to be provided. Further consideration may be monetary or non monetary. As per clause (ii) of sub-section (1) of section 67 of the Act where the consideration received is not wholly or partly consisting of money the value of taxable service shall be the equivalent money value of such consideration. Therefore in the instant case consideration is “Amount charged from service receiver + Money value of Tenancy Rights”. If the same (i.e. money value of non-monetary consideration) is not ascertainable then the value of such consideration is determined under clause (iii) of section 67 read with rule 3 of the Service Tax (Determination of the value) Rules 2006 “On the basis of gross amount charged for similar service provided to other person in the ordinary course of trade”. For second question:- the service tax is leviable on value of service provided and value means consideration i.e. any amount that is payable for the taxable services provided or to be provided. Therefore there is no any effect of the fact that building is 50% completed or 100% and service tax will be leviable on value of service (the rules for determination of value is already discussed above).

Sir, we are a taxpayer dealing in health care services. We have been making supply on which tax was payable by us but we have not paid the same erroneously. The same has been pointed out by department recently. Please suggest whether we have to pay interest and penalty along with tax.

As per sub-section (5) and (6) of Section 73 of CGST Act, if you have made payment of tax and informed the same to the department then the department ...
Sir We are dealing in trucks. We have received an export order from foreign buyer. We wish to procure trucks from 5 different manufacturers and supply them directly to the port without receiving on our own premises. Can we do the same to take benefit of merchant export by paying tax @ 0.1%.

. Yes, as per Notification 41/2017-intergrated tax (Rate) dated October 23, 2017, benefit of notification is available only when the material moves fr ...
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Tax payer being a company, is in one state (state -1). However vehicle carrying his goods is caught in another state (state-2) where the company is not having any registration. Company paid penalty under temporary registration ID created by the officer of state-2. Now, company wants to file an appeal but don’t have any temporary registration login credentials. How to file appeal in such a case?

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