Rate for service tax

12.36%

Mr. Ajay, a proprietress of Royal Security Agency received Rs.1,00,000 by an account payee cheque, as advance while signing a contract from providing taxable service; he receive Rs.5,00,000 by credit card while providing the service and another Rs.5,00,000 by a pay order after completion of service on January 31, 2009 All three transactions took place during financial year 2008-09.What would be amout of service tax?

Service tax will be 12.36% Pragnesh is right..

Originally posted by : PRATIK P MEHTA
	Service tax will be 12.36% Pragnesh is right..

Dear i want service tax amount.

Dear Deepak Soni

The annual threshold limit of service tax exemption for small service providers has been increased from Rs.8 lakh to Rs.10 lakh with effect from 1/4/2008.

Therefore upto 10 lakhs no service tax....

NOTIFICATION NO 8/2009-ST: Dated : February 24, 2009: The rate of service tax shall not be 12% but it shall be 10% and it shall be increased by education cess. Therefore the effective rate shall be 10.3% and not 12.36%... in your case 12.36%

Dear Deepak soni

Notification Nos. 9/2008 ST and 10/2008 ST, both dated 1/3/2008: Consequent upon the  increase in  the threshold exemption limit from Rs.8  lakh to Rs.10 lakh,  the  annual  turnover  limit  for  obtaining  service  tax  registration  has  also  been increased  from  Rs.7  lakh  to  Rs.9  lakh with  effect  from  1/4/2008.

Dear C.Balaji, is liability towards service tax 12360?

Service tax amount               11,00,000

Less : Exemption                   10,00,000

Taxable amount                     = 100000*12.36%

Service tax liability                  =12360