TAXATION OF FINANCIAL SERVICES

SONALI MALHOTRA SYBBI ROLL NO-36

ACKNOWLEDGEMENT
This is to certify that the project has been duly completed and submitted on time. It has helped us in enhancing our personality and knowledge. I would also like to thank my parents for the help and support to successfully complete the project on time.

INDEX
Sr No. Particulars 1 2 3 4 INTRODUCTION SERVICE TAX PROVISIONS APPLICABLE TO STOCK BROKING SERVICE TAX PROVISIONS APPLICABLE TO GENERAL INSURANCE SERVICE TAX PROVISIONS APPLICABLE TO INSURANCE AUXILIARY SERVICE TAX PROVISIONS APPLICABLE TO MANAGEMENT CONSULTANCY SERVICE TAX PROVISIONS APPLICABLE TO CREDIT RATING AGENCY SERVICE TAX PROVISIONS APPLICABLE TO BUSINESS AUXILIARY SERVICE TAX PROVISIONS APPLICABLE TO BANKING-OTHER FINANCIAL SERVICES BIBLIOGRAPHY

INTRODUCTION
Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services specified by the Central Government under the Finance Act, 1994. It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the tax and recovers the amount from the recipient of taxable service. Normally, the person? Who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax: (i) Where taxable services are provided by Foreign Service providers with no establishment in India, the recipient of such services in India is liable to pay Service Tax, (ii) For the services in relation to Insurance Auxiliary Service by an Insurance Agent, the Service Tax is to be paid by the Insurance Company (iii) For the taxable services provided by a Goods Transport Agency for transport of goods by Road, the person who pays or is liable to pay freight is liable to pay Service Tax, if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f)a registered dealer of excisable goods (g) a body corporate or a partnership firm (iv)For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service. [Refer: Sec. 68(2) of the Act read with Rule 2(d) of the Service Tax Rules, 1994.]

SERVICE TAX PROVISION APPLICABLE TO STOCK BROKING

Definition and scope of service: Recognized stock exchange has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). (Section 65(90) of Finance Act, 1994 as amended) Securities has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). (Section 65(93) of Finance Act, 1994 as amended) Stock-broker means a person, who has either made an application for registration or is registered as a stock broker, in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992). (Section 65(101) of Finance Act, 1994 as amended) Taxable service means any service provided or to be provided to any person, by a stock-broker in connection with the sale or purchase of securities listed on a recognized stock exchange. (Section 65(105)(a) of Finance Act, 1994 as amended) Rate of Tax and accounting code Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298 00440426 00440089

Secondary and Higher Education cess Other As levied or applicable Penalty/interest (Rate of tax is effective from 24.02.2012.)

Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :(a) The sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) When a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. (Sec.65A of Finance Act, 1994) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

SERVICE TAX PROVISION APPLICABLE TO GENERAL INSURANCE

Definition and scope of service: Taxable Service means any service provided or to be provided to a policy holder or any person, by an insurer, including re-insurer carrying on general insurance business in relation to general insurance businesses; [Section 65 (105) (d) of Finance Act, 1994 as amended] "General Insurance Business" has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalization) Act, 1972 [Section 65 (49) of Finance Act, 1994 as amended] "Insurer" means nay person carrying on the general insurance business or life insurance business and includes a re-insurer [Section 65 (58) of Finance Act, 1994 as amended] "Policy Holder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1938 (4 of 1938) [Section 65 (80) of Finance Act, 1994 as amended] (C)Rate of Tax and accounting code Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298 00440426 00440089

Secondary and Higher Education cess Other As levied or applicable Penalty/interest ( Rate of tax is effective from 24.02.2012.)

( D ) Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :-(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; 1. (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) When a service cannot be classified in the manner specified in clause (a)or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. ( Sec.65A of Finance Act,1994)

2.

(E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.For the purposes of this section, (a) Consideration includes any amount that is payable for the taxable services provided or to be provided (b) money includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value (c) gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense account or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)

SERVICE TAX PROVISION APPLICABLE TO INSURANCE AUXILIARY

Definition and scope of service: Taxable Service means any service provided or to be provided to a policy holder or any person or insurer, including re-insurer by an actuary or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning general insurance business. [Section 65 (105) (zl) of Finance Act, 1994 as amended] "Actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938) [Section 65(1) of Finance Act, 1994 as amended] "Insurance Agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938) [Section 65 (54) of Finance Act, 1994 as amended] "Insurance Auxiliary Service" means any service provided by an actuary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business "Intermediary or Insurance Intermediary" has the meaning assigned to it in sub- clause (f) of clause (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);[Section 65 (56) of Finance Act, 1994 as amended] "Policy Holder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1938 (4 of 1938) [Section 65 (80) of Finance Act, 1994 as amended] (C)Rate of Tax and accounting code Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298 00440426 00440089

Secondary and Higher Education cess Other As levied or applicable Penalty/interest (Rate of tax is effective from 24.02.2012.)

( D ) Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :(a) The sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; 3. (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) When a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. ( Sec.65A of Finance Act,1994)

4.

(E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. ( Sec.67 of Finance Act,1994)

SERVICE TAX PROVISIONS APPLICABLE TO MANAGEMENT CONSULTANCY

Definition and scope of service: Taxable Service means any service provided or to be provided to any person, by a management or business consultant in connection with the management of any organization or business in any manner [Section 65 (105) (r) of Finance Act, 1994 as amended] Management or business Consultant means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organization or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management [Section 65(65) of Finance Act, 1994 as amended] (C)Rate of Tax and accounting code Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298 00440426 00440089

Secondary and Higher Education cess Other As levied or applicable Penalty/interest (Rate of tax is effective from 24.02.2012.) ( D ) Classification of Taxable Services:

(1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65 (2)When for any reason , a taxable service is prima facie, classifiable under

two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :(a) the sub-clause which provides the most specific description shall be preferred to sub- clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. (Sec.65A of Finance Act, 1994) (E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) In a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him (ii) In a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration (iii) In a case where the provision of service is for a consideration which is not ascertainable, is the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

SERVICE TAX PROVISIONS APPLICABLE TO CREDIT RATING AGENCY

Definition and scope of service: "Credit Rating Agency" means any person engaged in the business of credit rating of any debt obligation or of any project or programmer requiring finance, whether in the form of debt or otherwise, and includes credit rating of any financial obligation, instrument or security, which has the purpose of providing a potential investor or any other person any information pertaining to the relative safety of timely payment of interest or principal (Section 65(34) of the Finance Act, 1994)

Taxable Service means any service provided or to be provided to any person, to a client, by a credit rating agency in relation to credit rating of any financial obligation, instrument or security (Section 65 (105) (x) of the Finance Act, 1994) (C) Rate of Tax & Accounting Code: Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298

Secondary and 00440426 Higher Education cess Other As levied or applicable 00440089 Penalty/interest (Rate of tax is effective from 24.02.2012.) (D) Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65;

(2) When for any reason, a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :-(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) When a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. (Section 65A of Finance Act, 1994) (E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.For the purposes of this section, (a) consideration includes any amount that is payable for the taxable services provided or to be provided; (b) money includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense account or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. (Section 67 of Finance Act, 1994)

SERVICE TAX PROVISIONS APPLICABLE TO BUSINESS AUXILIARY DEFINATION OF BUSINESS AUXILIARY Business Auxiliary Service means any service in relation to, (i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) Promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv)Procurement of goods or services, which are inputs for the client; or [Explanation For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, inputs means all goods or services intended for use by the client;] (v)Production or processing of goods for, or on behalf of the client; or (vi)Provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods. Explanation For the removal of doubts, it is hereby declared that for the purposes of this clause, (a) Commission Agent means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person (i) deals with goods or services or documents of title to such goods or services; or (ii) collects payment of sale price of such goods or services; or (iii) guarantees for collection or payment for such goods or services; or (iv) undertakes any activities relating to such sale or purchase of such goods or services;

(b) Excisable Goods has the meaning assigned to it in clause (d) of Section 2 of the Central Excise Act, 1994; (c)Manufacture has the meaning assigned to it in clause (f) of Section 2 of the Central Excise Act, 1944; (Section 65(19) of the Finance Act, 1994) Taxable Service means any service provided or to be provided to a client by any person in relation to business auxiliary service. (Section 65 (105) (zzb) of the Finance Act, 1994) (C) Rate of Tax & Accounting Code: Rate of Tax Service Tax Education Cess 12% of the value of services 2% of the service tax payable 1% of the service tax payable. Accounting Code 00440088 00440298

Secondary and 00440426 Higher Education cess Other As levied or applicable 00440089 Penalty/interest (Rate of tax is effective from 24.02.2012.) ( D ) Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason, a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which

gives them their essential character, in so far as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. (Section 65A of Finance Act, 1994) (E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall(i)in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

SERVICE TAX PROVISIONS APPLICABLE TO BANKING-OTHER FINANCIAL SERVICES Definition and scope of service: Taxable Service means any service provided or to be provided to any person, by a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern, in relation to banking and other financial services [Section 65 (105) (zm) of Finance Act, 1994 as amended] "Authorized Dealer of Foreign Exchange" has the meaning assigned to "authorized person" in clause (c) of Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); [Section 65(8) of Finance Act, 1994 as amended] "Banking" has the meanings assigned to it in clauses (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), [Section 65 (10) of Finance Act, 1994 as amended] "Banking Company" shall have the meanings assigned to it in clauses (a) of section 45 A of the Reserve Bank of India Act, 1934 (2 of 1934) [Section 65 (11) of Finance Act, 1994 as amended] Banking and Other Financial Services (a)The following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or [commercial concern]*, namely : (i) Financial leasing services including equipment leasing and hire-purchase; "Body Corporate" has the meaning assigned to it in clause (7) of Section 2 of the Companies Act, 1956 (1 of 1956); [Section 65 (14) of Finance Act, 1994 as amended] "Financial Institution" has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934)[Section 65 (45) of Finance Act, 1994 as amended] "Non-Banking Financial Company" has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934); [Section 65 (74) of Finance Act, 1994 as amended]

(C)

Rate of Tax & Accounting Code: Rate of Tax Service Tax

12% of the value of services Education Cess 2% of the service tax payable Secondary and 1% of the Higher service tax Education cess payable. Other As levied or Penalty/interest applicable ( Rate of tax is effective from 24.02.2012.)

Accounting Code 00440173 00440298 00440426 00440174

( D ) Classification of Taxable Services: (1) The classification of taxable services shall be determined according to the terms of the sub-clauses (105) of section 65; (2) When for any reason , a taxable service is prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows :(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merits consideration. ( Sec.65A of Finance Act,1994)

(E) Valuation of taxable services for charging Service tax (1) Service tax chargeable on any taxable service with reference to its value shall, (i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him; (ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration; (iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed. Explanation.For the purposes of this section, (a) Consideration includes any amount that is payable for the taxable services provided or to be provided; (b) money includes any currency, cheque, promissory note, letter of credit, draft, pay order, travelers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value; (c) gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense account or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. ( Sec.67 of Finance Act,1994)

BIBLIOGRAPHY
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