Availing specified abatement
This query is : Open
07 October 2011
Hi,
In case where a service tax provider enjoys a specific rate of abatement under the rules, so does the amount computed of Service Tax to be payable after calculation of such abatement needs to be charged to the customer? For Eg.: Under Construction of Residential and Complex services, if the provider enjoys abatement @67% (Rs. 17,42,000/-)on Gross Amount Charged of Rs. 26,00,000/-, how much should the service provider charge to the buyer or receiver of the service? To brief it up, what should be the billing amount to the service receiver and amount to be paid?
Thanks and Regards
In case where a service tax provider enjoys a specific rate of abatement under the rules, so does the amount computed of Service Tax to be payable after calculation of such abatement needs to be charged to the customer? For Eg.: Under Construction of Residential and Complex services, if the provider enjoys abatement @67% (Rs. 17,42,000/-)on Gross Amount Charged of Rs. 26,00,000/-, how much should the service provider charge to the buyer or receiver of the service? To brief it up, what should be the billing amount to the service receiver and amount to be paid?
Thanks and Regards
07 October 2011
Bill has to be issued for Rs.26 Lakhs and Service Tax is to be paid on 33% of Rs.26 Lakhs i.e. on Rs.8, 58, 000/-. Accordingly bill has to be prepared.
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08 October 2011
ok! so the ST to be paid by the "service receiver" is Rs. 88,374/- ie @ 10.3%? am i correct?
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