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Service tax calculation

Mr. Patnaik (Sr. Accounts) (35 Points)

27 November 2013

Hello Sir,

Thanks to Joining me in your group, Glad i am here

i am totally new for this forum and also my required subject, so i need your help to assist

my request is how to calculate the Service Tax amount from the Total Billing Amount when wo don't know

Total Bill Ammount is 63000/- which is party will pay us, but i am unable to Calculate the Service Tax With Abatement 40 %. Actualy without abatement we can calculate as Total Billamount / 112.36% = Assessable Value and we calculate the Service Tax on Assessable Value

Kindly assist me sir how to calculate

Thanking You

With Regards

Patnaik

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9 Replies

vishal sharma (Manager (Indirect Taxation)) (68 Points)
Replied 27 November 2013

pls elaborate the question

how u guys do the billing inclusive or exclusive method

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Mr. Patnaik (Sr. Accounts) (35 Points)
Replied 27 November 2013

@ 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

CA. Kishore Kumar Sethy (AGM F&A) (49 Points)
Replied 27 November 2013

Following ways ST may be calculated:

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%)]
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.

2 Like

Mr. Patnaik (Sr. Accounts) (35 Points)
Replied 27 November 2013

@ 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

Attached File : 842657 1254903 service tax calculation.xls downloaded: 535 times