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service tax

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24 June 2016 How to calculate service tax on works contract if inclusive tax of 14% in gross amount charge of rs100000 with 30% abatement

24 June 2016 Rs. 100000/114X100=87719
14% tax on Rs. 87719

24 June 2016 why 30% abatement not consider




24 June 2016 its net amount given by you . if you want to calculate gross amount of service than
87719/70x100= 125313

24 June 2016 so if gross amount rs 100000 then what will service tax .30% abatement available

24 June 2016 its 100000-30%=70000 X 14% =9800

24 June 2016 inclusive of 14% is 70000/114

24 June 2016 61403*14% =8596 is correct?




24 June 2016 yes its correct.........................................................

25 June 2016 If total amount received by you is Rs100000 than amount of taxable service is Rs 91074 and tax on such amount will be Rs 8925 (91074x14%x70%)
Total received rs 100000(91074+8925)

25 June 2016 Or if your value of service is Rs 100000 than there will be normal working i.e.
100000
+9800 (100000x14%x70%)
Total 109800
Since amount is inclusive od service tax and abatement your value of service will be 91074 tax on such will be 8925



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