Service tax return

This query is : Open

mohsin (Querist)
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24 October 2013 Dear experts

i have doubt in filing service tax return for works contract...below the example

sales 100000
vat on 75% 4500
service tax on 40%
by service provider
@ 6.18% 2472

my 1st query is value of 60 sales is called abatement?

and 2nd query is format of service tax return dont accept percentage of 6.18 while filing it says..
Following issues have been found in your return :
Tax Rate entered 6 in Provider Section in Payable Sheet is not Valid.

please help me regarding this

CA Vikas Acharya

CA Vikas Acharya (Expert)
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26 October 2013 yes 60% is called abatement

in case of work contract
rate are as follows:
40% taxable
12.36% of 40% is 4.944
hence this 6.18 is not corect
also if reverse charge applicable in your case it could be 50-50% and then it comes to 2.472

next: in return you have to write value equal to 100% in gross
then abated value 60%

and then on balance 40% tax rate
12% 2% and 1%.... which will come to 4.944

mohsin

mohsin (Querist)
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26 October 2013 thank you somuch

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mohsin

mohsin (Querist)
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26 October 2013
as per latest notification on works contract if we are charging 12.36 to the client

the service receiver he has to pay 6.18
and the service provider balance 6.18 that comes to total 12.36
now question is here since receivable paying half percentage of the tax, we charges to the receiver only 6.18 and same we are remittance to the department

please guide this regards