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Service tax calculation in hotel bill

This query is : Resolved 

24 October 2014 Hi i m kamal I have some confusion in service tax calculation in hotel billing.the question part is"after 40% abatement remaining 60% total sales become a taxable.so can we calculate by 12.36% service tax on taxable amt after abatement..???

27 October 2014 The same can be explained with an example.
Suppose total of restaurant bill for food item =1000
+Service tax (1000*60%*12.36%)=74.16(Here taxable amount is 600,service tax rate applied 12.36%)
or
Service tax (1000*7.416%)=74.16(Here abated rate aplied to whole value)

Its one and the same thing.


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