24 October 2013
Assesee is providing Tour operator Services. Assessee has computed his service tax liability after claiming abatement.The Rate of service tax taken by assessee is 3% and 1.2% excluding education cess and secondary education cess. But when return is uploaded by the assessee on www.aces.gov.in then the return is rejected by the system by showing error as " Advlorem Tax Rate 3, 1.2 entered in Provider Section in Payable Sheet for the Service "Tour operator services" is not Valid. Whether the Rate of service tax should be @ 12.36% as per Section 66B or there is any other issue???? Reply needed urgent...bcos tommorow is last of efiling.
24 October 2013
You can mention rate @ 12% only. Following example can solve your problem. Like Service Provided Value Rs. 1000 and service tax @ rate 3%
you can avail abatement under NN 26/2012 vide serial no. 11
So, Service Value = 1000 Abatement Value = 750 Taxable Value = 250
Now you can charge service tax at 12% on Rs. 250 which is equal to 3% of Rs. 1000
For further querry please mail me @ pradeepca23@gmail.com
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