how to treat abatement while calculating value of taxable service as per provision of section 67? An accommodation hotel having gross receipts of Rs. 29,00,000. where, declared tariff is 1000 and above also. Am I need to treat 40% abatement along with the available threshold limit 10 lac while calculating the applicability of service tax on me? How to find it out whether i fall in purview of service tax liability or not?
2 Replies
ARINDAM
(Manager Internal Audit)
(167 Points)
Replied 30 May 2013
Whenever a bill amt increare Rs 1000 then charge service tax @ 6.18%. In case of hotel accomodation 50% abatement is claimed. Registration will be mandatory whwnever it reaches Rs9 lakh.
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 31 May 2013
| Originally posted by : mayank maheshwari | ||
 |
how to treat abatement while calculating value of taxable service as per provision of section 67? An accommodation hotel having gross receipts of Rs. 29,00,000. where, declared tariff is 1000 and above also. Am I need to treat 40% abatement along with the available threshold limit 10 lac while calculating the applicability of service tax on me? How to find it out whether i fall in purview of service tax liability or not? |
|
Exemption upto 10 lakh is available to every assessee whose turnover in P.Y does not exceed Rs 10 lakhs. The threshold limit is before availing abatement. Value of service upto 10 lakhs is exempted and not value of taxable service. Hence, 40% abatemnt for determinng the limit.
Further, service tax is applicable if declared tariff is more than 1000 even if actual receipt is less than 1000.
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