Service compnent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2013
Example : i am receiving one bill include service tax bill amount 40745.00 but service component amount only 6000. + 12.36% so how to calculate service component amount

CA Vikas Acharya

CA Vikas Acharya (Expert)
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26 April 2013 service component is the part which is actually service in a composite contract.
it can be calculated by either maintaining books of accounts and separating service and sale tax differently or simply by using the abatement on various service as per notification no 26/2012

if a bill is for 100 and 60% abatement then service component is 40% on which tax will be charged @ 12.36%

Note: Its possible in case of composite services where 'sale + service' are there and not in case of all services. like in a restaurant a bill of food contains goods(vegetables etc) and also service(cooking etc)