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Determination of service tax in case of abatement

abatements 4639 views 2 replies

G. Nageswar Rao

73 Points Posted on 13 August 2013

please answer me

in the year 2011-12, the rate of service tax was 10.3%. For builders abatement was 75%. hence the applicable rate comes 2.575% i.e, 25% of 10.3%. Can we round of the rate to two decimal points ? that means is it correct to take the rate of service tax 2.57% for previous year?

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3505 Points Posted on 13 August 2013

No it should not be rounded off. But, however, you have not filed the ST3 for year 2011-2012. ? Had you done so, this question is irrelevant now.

Thanks,

G. Nageswar Rao

73 Points Posted on 13 August 2013

Sir please answer to me for anther question.

If srevice tax return had been filed with the amount calculated by taking the rate 2.57% instead of 2.575%. and service tax payment has not been paid till now. Then how much amount we shoud pay as service tax ?

Thank you for your ready reply sir