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What is the service tax rate

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badraiahpopuri

accountant

21 Points Posted on 01 July 2012

Dear sir ,

Good Evening

we are maintainig one photo copy machine on monthly Rental basis (Ricoh india )

they are calculating the service on Gross Value 12.36%

But Our Company people Gross value *33%

ex : Total value:15000/-

+ Service tax :15000*12.36/100

But our company people calculate 15000*33/100:

4950*12.36%

whether it is correct or wrong

Thanks

Badraiah p

Replies (1)

Ajit kumar Dubey

Taxation Manager

797 Points Posted on 02 July 2012

As per the recent changes made in the Works Contract in Service Tax determination rules, the present AMC work is a works contract. Now, if material consumption can be identified then the valuation is different. But if it cannot be separtely ascertained, then the value of service portion will be 70% of the bill value, as per the slab provided in the above said rules.