service tax
This query is : Resolved
CA Chandresh Jain
(Querist)
24 June 2016
How to calculate service tax on works contract if inclusive tax of 14% in gross amount charge of rs100000 with 30% abatement
Rupesh Jain
(Expert)
24 June 2016
Rs. 100000/114X100=87719
14% tax on Rs. 87719
14% tax on Rs. 87719
CA Chandresh Jain
(Querist)
24 June 2016
why 30% abatement not consider
Rupesh Jain
(Expert)
24 June 2016
its net amount given by you . if you want to calculate gross amount of service than
87719/70x100= 125313
87719/70x100= 125313
CA Chandresh Jain
(Querist)
24 June 2016
so if gross amount rs 100000 then what will service tax .30% abatement available
Rupesh Jain
(Expert)
24 June 2016
its 100000-30%=70000 X 14% =9800
CA Chandresh Jain
(Querist)
24 June 2016
inclusive of 14% is 70000/114
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CA Chandresh Jain
(Querist)
24 June 2016
61403*14% =8596
is correct?
Rupesh Jain
(Expert)
24 June 2016
yes its correct.........................................................
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25 June 2016
If total amount received by you is Rs100000 than amount of taxable service is Rs 91074 and tax on such amount will be Rs 8925 (91074x14%x70%)
Total received rs 100000(91074+8925)
Total received rs 100000(91074+8925)
25 June 2016
Or if your value of service is Rs 100000 than there will be normal working i.e.
100000
+9800 (100000x14%x70%)
Total 109800
Since amount is inclusive od service tax and abatement your value of service will be 91074 tax on such will be 8925
100000
+9800 (100000x14%x70%)
Total 109800
Since amount is inclusive od service tax and abatement your value of service will be 91074 tax on such will be 8925
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