Service tax calculation

pls elaborate the question 

how u guys do the billing inclusive or exclusive method

@ Vishal Hello,

Thanks for Your Quick Response, Actually one of my bro construct a new function hall and we fix the rates for that say for full function hall is 63000, A/c Mandap is 25000 and etc

so which rates we are fix they are including Tax amount

now how can i calculate the service Tax for that amount as per 40% abatment in Mandap Keeper Section

Following ways ST may be calculated:

1. Assuming bill amount is Rs.63,000/- inclusive of ST. Then ST  will be Rs.4,349.50 [63,000 X     (12.36%X60%) / (100% + 12.36%X60%)]
2. Assuming bill amount is Rs.63,000/- exclusive of ST. Then ST  will be Rs.4,672.08 [63,000 X     (12.36%X60%) / 100%], and bill amount will be Rs.67,672.08

Assuming abatement is 40% then tax portion comes to 60%.

Hope this has resolved your query.

@ Kishore

Sir,

Thanks for your replay, it's help me a lot, sir one more doubt when i enter the value in Individual Tax Figure then i am getting some difference figures of total Service Tax.

Sir, Kidnly assist me sir i want to learn the basic of calculating, for your better information i made a sample workbook in excel please check and suggest

Thanking you

With Regards

Patnaik

Sir,

i got a solution but i think it is not the correct procedure please check

[ 63000 X (12.36% X 60%)/(100%+12.36%X60%)*12/12.36 ]

[ 63000 X (12.36% X 60%)/(100%+12.36%X60%)*.24/12.36 ]

[ 63000 X (12.36% X 60%)/(100%+12.36%X60%)*.12/12.36 ]

Please correct me

Thanking you

With Regards

Patnaik

63000*(12.36 * 60%)=4672 (Service Tax amount )....Please elaborate in respect of nature of service...

Hi Mr. Patnaik,

PFA, I have shown the correct way of calculation. Hope it will help you out.

Hello Sir,

Thank You Very much

It's Rocking

Thanks for your valuable replay and spend your personal time for me

With Regards

Patnaik

Simple Way to calculate service tax for above:-

1. Inclusive of service tax:-

Service tax Rate: 12.36

Abatement: 40%

Taxable : 60%

It is easy way to solve this question: Calculate 60% of 12.36, ie-7.416

Now: Value 63000 inclusive of Service tax, mean inclusive of 7.416.

63000/107.416*100 = 58650 (Excluding of Service Tax)

58650*7.416%+ 4349.48/-

2. Excluding Service tax: 63000*7.416%= 4672/-