Service Tax - The gross amount has to be adopted to quantify the tax liability treating it as value of taxable serv

Whether the amount which has been paid by the service recipient to the appellant is inclusive or exclusive of service tax liability?

 

As per this system of taxation, tax borne by the consumer of goods/services is collected by the assessee (manufacturer/service provider) and remitted to the Government. When the amount is collected for the provision of services, the total compensation received should be treated as inclusive of service tax due to be paid by the ultimate customer of the services unless service tax is also paid by the customer separately. So considered, when no tax is collected separately, the gross amount has to be adopted to quantify the tax liability treating it as value of taxable service plus service tax payable.