Profeesional service with material

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CA Alok Goel

CA Practice

33 Points Posted on 26 October 2014

An architect is providing the services of Building Construction/ interior designing with material. How the service tax would be applied when:

Services started from April 2014 in a Pvt Ltd Company;
When Gross services have offered for Rs. 24 Lacs up to September 2014.

Now, whether we will get the basic Exemption of Rs.10 Lacs and after wards 40% would be recognized as Taxable services or

After abatement, we may get the exemption up to Rs. 10 Lacs ( Basic Exemption)

Kindly Clarify.

CA Alok Goel

M -098370 80659

Replies (4)

Jaikishan

184 Points Posted on 26 October 2014

Since as per Finance act abatement is not excluded in Aggregate value of services like exemption, hence the same will be included in services.

If Aggregate value of Taxable Services provided are More than 10 lakh during Current Financial year and Less or equal to than 10 lakh in Preceding Financial Year then Service tax is applicable after 10 lakh

Hence calculation in my view will be

(24 Lacs-10 Lacs) =14 Lacs *40%=Rs 560000*12.36%=Rs 69,216.

Still you can have a second view about it

Jaikishan

184 Points Posted on 26 October 2014

If abatement is applicable to architect, kindly confirm.

Manoj Agarwal

Service Tax Consultant Rourkela Service

2755 Points Posted on 27 October 2014

There is no abatement for providing architect services in N/N-26/2012. Do you mean he is providing builder/contractor services of construction? Kindly clearify the nature of service.

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 27 October 2014

The small scale exemption is available to you and hence the ST will be payale on Rs.14 only.I assume that this is first year in operation.This appears to be a work contract so you will also get the abatement on taxable value.