Dear Friends,
1. As per Rule 2C of valuation rules, the taxable portion of outdoor catering service is 60%, where as as per Notification 26/2012, it is 70%. Which is the actual rate to apply?
2. This rate has to be applied on gross amount (including services) - is it right ?
3. As per the above, if 70%, the effective rate will be 8.652% (100*70%*12.36%) - am I right ?
4. If the assessee has the right to pay service tax on the whole amount (including material cost) and then to avain cenvat credit on input services ?
Please share your views as early as possible.
Thanks in advance...
CAclubindia
