Service tax
YAGNESH HASMUKH DAVE
(Querist) 14 April 2014
This query is : Resolved
dear sir i have confusion in service tax calculation in work contract in which reverse charge and 40% abatment as some ca given me difference calculation for example calculation 1- if gross amt-1,00,000/- first do 50% reverse charge of gross which come to 50,000/- then do 40% abatment which come to 20,000/- then do 12.36 on it which comes to tax 2472 which i have to pay as reverse charge and calculation 2- gross amt 1,00,000/- do 40% abatment which comes to 40,000/- do 12.36 tax on it which comes to 4944 and then 50% of tax which comes to 2472 which i have to pay . there is no change in tax amt but their is change in gross amt so i am confused which calculation i should consider pl advice
T. Kalaiselvan, Advocate
(Expert) 15 April 2014
Plesae consult your tax consultant for proper and accurate information on the subject.
R.V.RAO
(Expert) 15 April 2014
the second method shown by the querist is right, since abatement is considered against taxable serv.value and tax arrived thereon and then partial rev.charge applied.
Surrender K Singal
(Expert) 15 April 2014
Abatement is to reduced from gross and not the taxable balance after abatement ??
100000-40000=60000 @12.36%=7416 @50%=3708 ?
