Service Tax charged on “Gross Amount” indicates entire Contract Value between Service Provider and Service Recipient: CESTAT [Read Order]

The bench held that any amount charged cannot become the basis of value on which service tax becomes payable but the amount charged has to be necessarily be a consideration for the service provided which is taxable under the Service Tax Act
CESTAT - Service Tax - CESTAT Allahabad - Contract Value - TAXSCAN

A two member bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Allahabad has held that a service tax is chargeable on the contract value between the service provider and service recipient. The bench observed that the value which is not part of the contract between the service provider and the service…

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