About the valuation of service tax payable

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 hi,friends i have some doubt regarding service tax. let me tell you that in service tax in some cases it was given that 10.3/110.3 and in some cases it was that 100/110.3 and in some cases it was 10.3/100 please if anybody knows about it, please share this information with me and i will be thankful to them

CA Pushpendra Gaur

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03 October 2011 well it all depends upon the basis on which you are reqd to apply the above mathematical figures

CA Pushpendra Gaur

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03 October 2011 If the service tax liabilty is to be calculated on gross basis

the formula to be applied as

Amount received * 10.3/110.3

CA Pushpendra Gaur

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03 October 2011 the above formula is applied in the case when the amount is received on gross basis or when the party didnot recieved the amount of service tax

CA Pushpendra Gaur

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03 October 2011 example of above calculation is
when the service was provided of Rs 5,000 and no seperate calculation for service tax was made
or when the bill was raised for Rs 5,515 but the amount was either partly received or the amount of service tax was not recieved

CA Pushpendra Gaur

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03 October 2011 The 100/110.3 formula is to calculate the taxable service amount i.e. avlue of teh services i,e, the amount on which you are required to calculate the service tax liability

CA Pushpendra Gaur

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03 October 2011 example of above is that you received a bill inclusive of service tax amounting Rs. 5,515 and u r reqd to calculate the amount of value of services then

5515 / 110.3 * 100 = Rs. 5,000

CA Pushpendra Gaur

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03 October 2011 the above type of calculations are reqd to be made because it is the value of service tax i.e. to be booked as expenses and the amount of service tax is to be booked as Service TAX Input

CA Pushpendra Gaur

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03 October 2011 The 10.3/100 is applied when u r reqd to calculate the amount of service tax on the value of services

CA Pushpendra Gaur

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03 October 2011 The 10.3/100 is applied when u r reqd to calculate the amount of service tax on the value of services i.e. on the amount to be received for services rendered

CA Pushpendra Gaur

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03 October 2011 e.g. of above when you gave services worth Rs 10,000 and u r reqd to calculate the amount of service tax
the method will be

10000/100*10.3 =1030

CA Pushpendra Gaur

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03 October 2011 hey friend the application of all the above depends on the fact that whether athe amount which is given to you is inclusive of service tax or exclusive of service tax

CA Pushpendra Gaur

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03 October 2011 In case the amount given is inclusive of service tax then the given amount is to be divided by 110.3 else if it is exclusive of service tax it is to be divided by 100

CA Pushpendra Gaur

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03 October 2011 you are reqd to multiply by 100 when you r reqd to calculate the value of taxable services and multiply by 10.3 when u r reqd to calculate the amount of service tax

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