Restaurant services

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 Sir,

While calculating the threshold limit of 10 Lacs for taking registration for Service Tax, which figure should i consider?
a) Is it the value on which service tax is charged @ 12.36% i.e. 40%of total sale value including service charge?
OR
b) Is it 100% i.e. total sales including service charge?

Please help.

haridhayalan

haridhayalan (Expert)
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25 June 2013 b is correct

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Sir, With due respect i would again put forward some of my possible confusing points:
1) please refer the following link
https://www.caclubindia.com/experts/abatement-in-st-1099124.asp
2) “Aggregate value” [as defined in this notification itself] means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification."

The above 2points are contradicting.
Please help me in this issue.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Further please enlighten on the difference between abatement & exempted in details.. as i feel it is relevant