Service tax exemption turnover limit under notification no 33/2012

i have query ,my client has provide residential constructions service during this first year we received Rs 500000/- as booking advance .so calculation of service tax i consider the following structure . booking advance ------5000000/- (-) abatement 75%-----3750000/- Taxable portion ------ 1250000 (-) small service 1000000 exemption 33/12 tax calculate on RS 250000/- so it correct or not please guide mie
Replies (3)

Yes it is correct, subject to the fact that 75% abatement will be available only if the property which is constructed fulfills the below criteria-

the carpet area of the unit is less than 2000 square feet; and

the amount charged for the unit is less than rupees one crore.

 

thank you Mayur but the service tax officer denied this computation as per his opinion the definition related to total aggregate value cover abatement value hence Rs. 1000000/- is firstly deducted from Total advance booking amount & then abatement can be taken & service tax computed on remaining taxable value.i also not agree with their opinion so can  u provide  me exact documentation regarding this like any notification or circular or article to clear this confusion.please

Sorry but i thought that you were asking about the exemption percentage.
As far as the basic exemption limit of Rs. 10,00,000 is concerned, the exemption is available on value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of Finance Act, 2012 under any other notification.
Hence in your case, exemption will be deducted from Rs. 50,00,000 and service tax shall be charged on 25% of Rs. 40,00,000 i:e 10,00,000.
You can refer to Exemption Notification No. 33/2012 issued by CBEC. 

 

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