Weather abatement is include in exemption limit

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Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2014 Dear sir,

Plz guide me in calculation

Total Receipt Rs.1200000
Abatement@60% Rs.720000
------------
Taxable service Rs.480000

hence below exemption limit( Rs.10,00,000), so no question to go for services tax obligation.

Wheather i am right ....

Annu Agarwal

Annu Agarwal (Expert)

05 March 2014 sir you are totally right.You are not required to pay service tax as value of taxable service provided is less than exemption limit.

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2014 Need more reply with rule & Notification if any

Annu Agarwal

Annu Agarwal (Expert)

06 March 2014 Sir as per my understanding of Notification Number 33/2012,Aggregate value of Taxable services shall mean only only the taxable part of the service.
As in your case taxable part is 40%,the same only should be considered for the purpose of exemption limit.
Moreover service tax is payable only on taxable part and not on abated part.

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