anilwyd (77 Points)
24 July 2012In the Notification 15/2012
regrading reverse charge- in clause 7 - renting of vehicle- two option are there
1> 100% ST to be paid by Service receiver (Abated value)
2> 40 % ST to be paid by Service receiver (Non abated value)
What is the meaning of abated value? How it is calculated?
please advise.
satya
(Executive Excise)
(1839 Points)
Replied 25 July 2012
Dear Anil,
Please refer Not.26/2012 ST dtd.20-June-2012 for new Abatements in Service Tax wef:01-July-2012.
at the above table at Sl.no.9 "Renting of any motor Vehicle designed to carry passengers" after abtement yoy have to calculate tax @ 40% on gross value.
EXbill is for 20K, receiver opt for abatemented value is 8k tax is 100% @ 12.36% so tax is 989 only.
if non abtement means total tax is 2472, hence receiver part is only 40% @ 989/-.
I think your issue resolved.
CAclubindia
