Service Tax Exemption on Works Contract Service

Share
Share This Thread
  1. Himanshu Shah

    Himanshu Shah New Member

    Dear Sir,


    Receipts of Works Contract Service during the year = Rs.30,00,000/-

    Which of the following method should be used for calculating service tax liability

    1. (30,00,000-10,00,000) x 40% x 12.36% = 98,880/- or

    2. [(30,00,000 *40%) - 10,00,000 ] x 12.36% = 24,720/-

    Kindly guide in this matter at earliest.
    Also provide any case law if available on the said matter

    Thanks
     
  2. TAX BANIYA

    TAX BANIYA New Member

    10,00,000 amount is for what purpose you are deducting.
     
  3. Neha Agarwal

    Neha Agarwal Member

    As I get, you are deducting Rs: 10 Lac as exemption for SSP limit. Excmptioin limit will not be applicable in this case. You should calculate service tax as follows
    30 Lac *40% *12.36%
    or
    30 Lac*4.944%
     
  4. M srinivas reddy

    M srinivas reddy New Member

    what about vat payments included in the work contracts..whether we should deduct vat
    Eg : (3000000-500000 (vat))*40%*12..36%
    the above calculation is correct...??
     
Draft saved Draft deleted
Loading...