Page 128 - GSTL_18th June 2020_Vol 37_Part 3

342 GST LAW TIMES [ Vol. 37
6. To begin with, we cannot accept the appellant’s plea that huge park-
ing space area was given to the appellant without any agreement with respect to
financial consideration or without an agreement with respect to contingent liabil-
ities with respect to theft, injuries, fire or other liabilities. It is difficult to believe
that such an enormous responsibility was given without any agreement. Even
otherwise, the activity of the appellant is covered within the definition of ‘man-
agement, maintenance or repairs’. It is not necessary that the service recipient,
which are the mall owners in this case should receive any pecuniary considera-
tion from the service. Even a service without any direct pecuniary benefit to the
service recipient is also a service. Even if we take that the interest of the mall
owners is that the appellant should provide a hassle free parking, it is a service to
the mall owners by the appellant. Again, the plea of the appellant that no mone-
tary consideration is being paid by the mall owners is without substance. The
appellant has been allowed to use space and collected parking fee. This is a valid
consideration in terms of the service tax provisions as it is not necessary that the
consideration should always be directly in the form of money. If the considera-
tion is in terms of some benefit to the service provider which can be measured or
converted into money it will constitute a valid consideration. Reference can be
made to the relevant provisions of Section 67 of the Finance Act, 1994 regarding
valuation of the taxable service. It is as follow :
SECTION 67. Valuation of taxable services for charging service tax. - (1)
Subject to the provisions of this Chapter, where service tax is chargeable on
any taxable service with reference to its value, then such 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 provid-
er 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 as, with the addition of service tax charged, is equiva-
lent 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 deter-
mined 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 paya-
ble, 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 provi-
sion 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 -
(i) any amount that is payable for the taxable services provided
or to be provided;
(ii) any reimbursable expenditure or cost incurred by the service
GST LAW TIMES  18th June 2020  128