Service collected @ 5.25%
ANITHA (SENIOR ACCOUNTANT) (51 Points)
10 May 2017
Am Anitha started my practicing with Auditor . i want to know about service tax collected @ 5.25%
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 10 May 2017
It is applied on bills which are in the nature of works contract where there is an abatement of 30% and on the value of service tax rate of 15% is calculated on 70% of the value on which receiver will bear 50% and provider will bear 50% which will work out to 5.25%
15%*70%*50%=5.25%
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