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first year service tax liability

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This query is : Resolved

P AGRAWAL (Querist)

05 April 2017 x an individual carrying on construction activities of flats building. he takes the service tax NO in fy 2016-17. total receipt during the year is rs 15.00 lacs. service tax liability after calculating abatement ie 15 / 70% is 10.50 lacs. and assessable value is rs 4.50 lava. so my query is whether thresholds limit of rs 10.00 lacs will apply with respect to assessable value or abatement values of 4.50 lacs. and thereby the assesee need not pay service tax. Please advise

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

06 April 2017 To check the threshold limit ,GROSS RECEIPT (Rs.15 lakhs) has to be considered. Being 1st year of service, Rs.10 lakhs can be deducted from the gross value (Rs.15 lakhs) and the balance Rs.5 lakhs is the taxable value of service. Then avail abatement @ 70% on Rs. 5 lakhs meaning thereby the value on which service tax payable is Rs. 1.50 lakhs.

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