In the following given problem in institute RTP Nov 2016, SBC credit has also been taken,
My query is how do we solve in exam, as SBC credit is not allowed.
If we don't take SBC credit the amount of service tax payable is Rs. 6,48,000/- as per my computations?
So which method is Correct?
Singhal Classes is engaged in providing taxable commercial training and coaching services to students in Rajasthan. You are required to compute service tax payable in cash by Singhal Classes for the financial year 2015-16 from the following information pertaining to said financial year assuming that service tax has been paid on the services availed.
Particulars Amount charged or paid for services (`)
1. Coaching fees collected from the students 50,00,000
2. Services of catering, photography and tents availed for
the celebrations organised, after completion of the
academic sessions, for meritorious students 5,50,000
3. Rent paid for hiring of examination hall for the purpose of
conducting examination for students undergoing the coaching 4,50,000
4. Travelling expenses incurred for the business tours 3,50,000
5. Advertisement expenses incurred for promoting Singhal Classes 1,00,000
Note: Service tax and SBC have been charged separately on all the above services, wherever applicable. Ignore SSP exemption.
CAclubindia
