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Weather abatement is include in exemption limit

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 March 2014 Dear sir,

Plz guide me in calculation

Total Receipt Rs.1200000
Abatement@60% Rs.720000
------------
Taxable service Rs.480000

hence below exemption limit( Rs.10,00,000), so no question to go for services tax obligation.


Wheather i am right ....

05 March 2014 sir you are totally right.You are not required to pay service tax as value of taxable service provided is less than exemption limit.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 March 2014 Need more reply with rule & Notification if any


06 March 2014 Sir as per my understanding of Notification Number 33/2012,Aggregate value of Taxable services shall mean only only the taxable part of the service.
As in your case taxable part is 40%,the same only should be considered for the purpose of exemption limit.
Moreover service tax is payable only on taxable part and not on abated part.



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