i have doubt in filing service tax return for works contract...below the example
sales 100000 vat on 75% 4500 service tax on 40% by service provider @ 6.18% 2472
my 1st query is value of 60 sales is called abatement?
and 2nd query is format of service tax return dont accept percentage of 6.18 while filing it says.. Following issues have been found in your return : Tax Rate entered 6 in Provider Section in Payable Sheet is not Valid.
in case of work contract rate are as follows: 40% taxable 12.36% of 40% is 4.944 hence this 6.18 is not corect also if reverse charge applicable in your case it could be 50-50% and then it comes to 2.472
next: in return you have to write value equal to 100% in gross then abated value 60%
and then on balance 40% tax rate 12% 2% and 1%.... which will come to 4.944
26 October 2013
as per latest notification on works contract if we are charging 12.36 to the client
the service receiver he has to pay 6.18 and the service provider balance 6.18 that comes to total 12.36 now question is here since receivable paying half percentage of the tax, we charges to the receiver only 6.18 and same we are remittance to the department
CAclubindia
