Any consideration (something in return) received towards services provided or paid towards services received in a form other than money is called Money equivalent.
Consider two service providers buying and selling services between them. Instead of paying each other for services they mutually agree to settle the liability through a form other than money. Since service tax needs to be paid on receipt of payment, in the above situation service providers will pay tax on money equivalent of service exchanged.
Example: Royal Agency, procured catering services from Taaza Caterers from Rs. 15,000 and provided advertising services for Rs. 30000. Royal Agency instead of making payment of Rs.15,000 to Taaza Caterers adjusted the amount towards advertisement services provided (to arrive at the Net amount receivable).
This adjustment of Rs. 15,000 is known as Money equivalent as the consideration is received towards the services provided in a form other than Money i.e. bill adjustment.