Calculation in case of abatement 75%

suppose you provide service worth 100. then s.tax payable is 14% of (100*75%), i.e. 14% of 25 which equals to 3.5 and total amt payable is 100+3.5=103.5.... if you calculate % of s.tax payable on total value of service then it is 3.5/100*100=3.5%.
now if you are given value of service including s.tax, then you need to reverse calculate the actualbamt of service given. lets understand with my example above.
103.5 includes value of service and 3.5% of s.tax. then while doing reverse calculation we will divide 103.5 by 103.5% to arrive at value of service provided. thus if you break the equation then it comes to 103.5/103.5*100=100 (which is the value of service given).

Please make me correct if I am worng,

Amt Received Inclusive of ST 50000

Abatement is 75%

ST rate is 14% 

the liability of ST is as below:

50000 / 103.5 * 100 = 48309.1787 ( amt exclusive )

48309.17 * 25% = 12077.2946 (amt after abatement)

12077.2946 * 14% = 1690.8212  ( amt payable as service tax)

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ST rate is 14.5%

50000 / 103.625 * 100 = 48250.9047  ( amt exclusive )

48250.9047 * 25% = 12062.7261  (amt after abatment )

12062.7261 * 14 % = 1688.7816 ( amt payable as service tax)

12062.7261 * 0.5 % = 60.3136  (amt payable as swachh bharat cess )

 

 

yes, it is correct.

FYI, the abetment is revised wef 1.4.16, as 70% and payable is on 30%.

On GTA and Construction of Residential complex both ?