CALCULATION OF ABATEMENT

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Querist : Anonymous (Querist)

03 August 2010 How do we calculate service tax liability in case of abatement?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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03 August 2010 When an assessee avails the abatement, then service tax liability will be as below:

Abated Rate 40 percent (assume)

AV of services = Rs 10,000/-

Abated amount @40 % = Rs 4,000/-

Balance = Rs 6,000/-

Service tax @10% = Rs 600/-

EC @ 2 % = Rs 12/-

SHEC @% = Rs 6/-

Total liability = Rs 618/-

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