Hi frids,
My Residential complex construction company has registered under all taxable services excluding negative list til Jan'13. But we were calculating tax as per works contract provision and taken 60% abatement on consideration on such period. we pay VAT under composition scheme and Calculate service tax on excluding service tax i.e after deducting 2% VAT from consideration and calculates VAT on remaining. For example if consideration is Rs.10000,
1.VAT calculation= 10000 * 2%= Rs.200
2.Service tax = 10000-200 * 40%(abatement) * 12.36% = Rs.485.
was our calculation correct??? can we claim abatement??? Pls some one clarify me.
CAclubindia
