Service tax..worth sharing
CA RAHUL AGRAWAL (Assistant Manager-Service Tax) (1733 Points)
02 November 2012CA RAHUL AGRAWAL (Assistant Manager-Service Tax) (1733 Points)
02 November 2012
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 02 November 2012
In amendment brought by budget 12-13, the abated value for restaurant services(alongwith supply of food) is 40 %(of 12.36%) of total amount charged.... So, there is no default made by the restaurant... If they want to charge only on service portion, then it shall be taxed @ 12.36%..
If there is bifurcation in invoice, then the service tax shall be chargeable @ 12.36%......
Even if the amount is bifurcated in invoice, the service tax may be charged on abated value of 4.944% of total amount charged(inclusive of Material & Service charges)