Difference between 4.12% and 12.36% on 33%
This query is : Resolved
05 January 2009
Good Afternoon,
My name is Rajkumar. I have completed my MBA with finance specialtion.
I would like know the "what is the distungish between the service tax collecting 4.12% and 12.36% on 33% of invoice value.How they are measure to collect this service tax and what basis?"
So please provide your valuable answer.
My name is Rajkumar. I have completed my MBA with finance specialtion.
I would like know the "what is the distungish between the service tax collecting 4.12% and 12.36% on 33% of invoice value.How they are measure to collect this service tax and what basis?"
So please provide your valuable answer.
05 January 2009
In some type of services, department has provided abatements on %s basis like works contract where material and services are INCLUSIVE there is an abatement of 2/3 (means 66.666666666%)
Some service providers are calculating service tax by direct method that is service tax rate multiplied by taxability percentage which in above case is 1/3
like 12.36*1/3 = 4.12%
Some service providers are calculating service tax by direct method that is service tax rate multiplied by taxability percentage which in above case is 1/3
like 12.36*1/3 = 4.12%
05 January 2009
Suppose there is a works contract of 100/-.
Now, in service tax there is abatement of 67%(adhoc of material value).
So labour value =(100-67)= 33 * 12.36% = 4.12 or alternatively u can charge 4.12 on 100 = 4.12.
Now, in service tax there is abatement of 67%(adhoc of material value).
So labour value =(100-67)= 33 * 12.36% = 4.12 or alternatively u can charge 4.12 on 100 = 4.12.
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