Availing specified abatement

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Harshad Patil (Querist)
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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

rajula gurva reddy

rajula gurva reddy (Expert)
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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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Harshad Patil

Harshad Patil (Querist)
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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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