A works contractor ( an indivudual) raised bills of Rs 48 lakhs and received payment of Rs 40 lakhs in the first year of his business.How the theshold exemption and service tax will e calculated.
shyam sundar joshi (job ) (25 Points)
26 April 2017A works contractor ( an indivudual) raised bills of Rs 48 lakhs and received payment of Rs 40 lakhs in the first year of his business.How the theshold exemption and service tax will e calculated.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 26 April 2017
works contract has 30% abatement so on 48 lacs *70%=3360000
on that service tax and cess 15% be applied which comes to Rs 504000
shyam sundar joshi
(job )
(25 Points)
Replied 26 April 2017
But there is SSP exemption and aaggregate value of taxable service is less than 50 lakhs so will he not pay on receipt basis ie on Rs 40lakhs . How SSP and abatement will be claculated the.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 26 April 2017
SSP will not be available to an assesse who pays service tax which are covered by Reverse charge mechanism let experts reply on the same
shyam sundar joshi
(job )
(25 Points)
Replied 26 April 2017
He is service provider so he will get SSP. receipt basis means that he will pay ST on amount received or he will pay on bills raised by the dates when amount is received. Will ST be calculated on Rs 40 lakhs.
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