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Valuation of Services for Service Tax Purposes

Description: This quiz covers the valuation of services for service tax purposes under Indian law.
Number of Questions: 15
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Tags: service tax valuation of services
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Which of the following is not a method of valuation of services for service tax purposes?

  1. Cost of service method

  2. Gross receipts method

  3. Transaction value method

  4. Residual method


Correct Option: D
Explanation:

The residual method is not a method of valuation of services for service tax purposes.

Under the cost of service method, the value of a service is determined by:

  1. Adding the cost of materials, labor, and overhead

  2. Subtracting the cost of materials, labor, and overhead from the gross receipts

  3. Multiplying the cost of materials, labor, and overhead by a markup factor

  4. Dividing the cost of materials, labor, and overhead by a markup factor


Correct Option: A
Explanation:

Under the cost of service method, the value of a service is determined by adding the cost of materials, labor, and overhead.

Under the gross receipts method, the value of a service is determined by:

  1. Adding the cost of materials, labor, and overhead

  2. Subtracting the cost of materials, labor, and overhead from the gross receipts

  3. Multiplying the gross receipts by a markup factor

  4. Dividing the gross receipts by a markup factor


Correct Option: C
Explanation:

Under the gross receipts method, the value of a service is determined by multiplying the gross receipts by a markup factor.

Under the transaction value method, the value of a service is determined by:

  1. The price actually paid or payable for the service

  2. The price that would have been paid or payable for the service in an arm's length transaction

  3. The cost of materials, labor, and overhead

  4. The gross receipts from the service


Correct Option: A
Explanation:

Under the transaction value method, the value of a service is determined by the price actually paid or payable for the service.

Which of the following services is exempt from service tax?

  1. Legal services

  2. Accounting services

  3. Engineering services

  4. Architectural services


Correct Option: A
Explanation:

Legal services are exempt from service tax.

Which of the following services is subject to a service tax of 12%?

  1. Hotel accommodation services

  2. Restaurant services

  3. Air travel services

  4. Telecommunication services


Correct Option: A
Explanation:

Hotel accommodation services are subject to a service tax of 12%.

Which of the following services is subject to a service tax of 18%?

  1. Consulting services

  2. Management services

  3. Information technology services

  4. Business support services


Correct Option: A
Explanation:

Consulting services are subject to a service tax of 18%.

Which of the following services is subject to a service tax of 28%?

  1. Gambling services

  2. Betting services

  3. Lottery services

  4. Horse racing services


Correct Option: A
Explanation:

Gambling services are subject to a service tax of 28%.

Which of the following services is subject to a service tax of 30%?

  1. Cigarette smoking services

  2. Alcohol drinking services

  3. Drug taking services

  4. Prostitution services


Correct Option: A
Explanation:

Cigarette smoking services are subject to a service tax of 30%.

Which of the following services is subject to a service tax of 40%?

  1. Pan masala chewing services

  2. Gutkha chewing services

  3. Tobacco chewing services

  4. Snuff chewing services


Correct Option: A
Explanation:

Pan masala chewing services are subject to a service tax of 40%.

Which of the following services is subject to a service tax of 50%?

  1. Aerated water drinking services

  2. Soft drink drinking services

  3. Fruit juice drinking services

  4. Vegetable juice drinking services


Correct Option: A
Explanation:

Aerated water drinking services are subject to a service tax of 50%.

Which of the following services is subject to a service tax of 60%?

  1. Ice cream eating services

  2. Chocolate eating services

  3. Candy eating services

  4. Biscuit eating services


Correct Option: A
Explanation:

Ice cream eating services are subject to a service tax of 60%.

Which of the following services is subject to a service tax of 70%?

  1. Movie watching services

  2. Theatre watching services

  3. Circus watching services

  4. Magic show watching services


Correct Option: A
Explanation:

Movie watching services are subject to a service tax of 70%.

Which of the following services is subject to a service tax of 80%?

  1. Amusement park services

  2. Water park services

  3. Theme park services

  4. Adventure park services


Correct Option: A
Explanation:

Amusement park services are subject to a service tax of 80%.

Which of the following services is subject to a service tax of 90%?

  1. Gambling services

  2. Betting services

  3. Lottery services

  4. Horse racing services


Correct Option: A
Explanation:

Gambling services are subject to a service tax of 90%.

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