Abetment or exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2016 Dear Sir,
Suppose service provider in case of work contract, charges service tax on the 40% of gross amount. Rest 60% amount is called as exempted amount
or
it would be called as abetment ?
Please clarify.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 January 2016 It is abetment for the purpose of Service Tax.

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2016 which notification no. is to cite in st-3 for the 60% abetment on work contract?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 January 2016 Notification 24/2012 - ST

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2016 Suppose gross amount is Rs. 1000/- and we have charged 14% on 400/- . Then we collected 50% from our coustomer under RCM.
Then we should give service tax rate 7%
or
We should give tax rate @14% in st-3.

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2016 I should mention 7% rate in advalorem rate col.
or
in specific rate column ?

CA Kedar Sakhardande

CA Kedar Sakhardande (Expert)
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30 January 2016 Yes it is Abatement for Service Tax purpose. You have to specify the notification.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2016 I should mention 7% rate in advalorem rate col.
or
in specific rate under rule 6 column ?