Amt recovered incl of st

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PARV (Querist)
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10 September 2014 Respected Sir/Madam.
Our org had not paid any service tax amt for the F.y.12-13 and notice is rec from ST Dept for payment.
As Our org had not shown tax separetely in the invoice so we are considering inclusive in amt collected.
As this was our 1st year we have to claim Exemption of Rs.10 lakh.
So my Q is on Exemption.
On which amt shall we claim exemption of Rs.1oLakh. 1. on Gross amt (Incl of S.T.) or After excl of S.T (On Net Amt)
E.g.Claim exemption (10lakh) from Gross 100 lakh or net 89 lakhs & calculate st

Annu Agarwal

Annu Agarwal (Expert)
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10 September 2014 Your total turnover is 100 lakh.
assuming you have not claimed exemption.
Turnover of 10 lakh is exempted.
Remaining turnover is 90 lakh inclusive of service tax.so taxable turnover would be:
9,00,000/112.36*100=8,00,997
service tax thereon would be 99,003.

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PARV

PARV (Querist)
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10 September 2014 IT MEANS I HAVE TO CLAIM EXEMPTION FROM GROSS AMT (INCL OF S.T)
CAN U PLS PROVIDE ME ANY CASELAW/INTERPRETATIONS GIVEN BY ANY AUTHORITY/DEPT.PLS
THANKS FOR RESOLVING MY QUERY.

Annu Agarwal

Annu Agarwal (Expert)
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11 September 2014 Just apply the simple logic when no service tax is levied on turnover upto 10,00,000 this means that turnover upto 10,00,000 shall not be considered for charging service tax.

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