Service tax basic exemption

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2015 Dear Sir,

Receipts of Works Contract Service during the year = Rs.30,00,000/-

Which of the following method should be used for calculating service tax liability

1. (30,00,000-10,00,000) x 40% x 12.36% = 98,880/- or

2. [(30,00,000 *40%) - 10,00,000 ] x 12.36% = 24,720/-

Kindly guide in this matter at earliest if this is first year of business.

Thanks.

Harshal Fifadra

Harshal Fifadra (Expert)
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12 February 2015 30,00,000 - 10,00,000 = 20,00,000 *40%*12.36% .98,880 would be the total service tax liability.

However, service tax to be discharged by service provider shall be 50% i.e. 49,440/-

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2015 I have received notice for non filing of ST Return asking for Balance Sheet and all such Details. I have not paid service tax and not filed Service Tax Return.
Whether it is advisable to pay service tax before replying to such notice or to attend the hearing and let the officer calculate the demand.
Would there be any benefit if I pay Service Tax before replying to such notice.

Also I have received the notice through courier. Whether it is considered as valid service of notice under service tax provisions.

Thanks.