CA student

IS service provider is eligible for SSP when he is getting abatement simultaneously..
 
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KVO Merau Kutchh

YES      

 
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CA student

Sir kindly provide me supporting.. It would be better and helpful for me..
 
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KVO Merau Kutchh

As such there is no clarification or case law in support or against the interepretation by different professionals in this regards. One supporting the issue : 1. http://www.simpletaxindia.net/2012/09/service-tax-exemption-limit-who-can.H T M L#axzz4caG71DEr

2. https://www.facebook.com/CKPAndCo/posts/462901413732347

(Personally, I do not support the interpretation)

 
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CA student

Sir actually point is.. 

I refer my indirect tax book from which I study.. And from that book I understood that ssp is also available to assessee claiming abatement.. 

But I saw the Institute suggested answer.. Where it is shown that.. 

Construction contract is Rs. 3000000.. And service tax is calculated on 20 lacs(ie., 30 Lacs minus 10 lacs of ssp provision).. Ie., 15% on 20 Lacs.. 

They have not dedicated 70 % abatement from construction contract amount.. 

Now what should I do in exam.. 
 
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KVO Merau Kutchh

1. What you had referred earlier and present query are based on different aspects. Earlier it was whether SSP limit should be calculated based on total taxable value or abated value. Theoretical Answer is Total Taxable value.

2. In this query, as I understand from the figures is:  when assessee crosses SSP limit first time, on what value the tax will be applicable? 30 lakhs total service value, or after crossing the limit of 10 lakhs; i.e. 20 lakhs. (here question about abatement sees to be silent) Confirm with E-sahaayataa, it could even be 4.5% of 20 lakhs.

 
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CA student

Yes I have again checked the suggested answer in which.. Abatement is not deducted but the then rates has been considered after abatement (ie., 25% *14) service tax rate was 3.5%.. 
 
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KVO Merau Kutchh

Good. Means abatement was 75%.

 
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CA student

Thanks sir for clearing my doubt..
 
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