Service Tax Basic Exemption

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....ervice Tax Basic Exemption<br> Query (Issue) Started By: - HIMANSHU SHAH Dated:- 11-2-2015 Last Reply Date:- 21-2-2015 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear Sir, Receipts of Works Contr....

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....act Service during the year = &#8377; 30,00,000/- Which of the following method should be used for calculating service tax liability 1. (30,00,000-10,00,000) x 40&#37; x 12.36&#37; = 98,880/- or ....

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.... 2. [(30,00,000 *40&#37;) - 10,00,000 ] x 12.36&#37; = 24,720/- Kindly guide in this matter at earliest if this is first year of business. Thanks. Reply By Deepak Aggarwal: The Reply: Dear Himan....

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....shu ji, In my opinion, first method will work- (30,00,000-10,00,000) x 40&#37; x 12.36&#37; = 98,880/-. Thanks Reply By Deepak Aggarwal: The Reply: Dear Himanshu ji, Please ignore earlier reply. ....

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....Correct position will be as per second method i.e. [(30,00,000 *40&#37;) - 10,00,000 ] x 12.36&#37; = 24,720/-. Reason is that works contract service is covered by valuation rules. Valuation rules spe....

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....cifies that only 40&#37; will be taxable value in case of Works contracts. So, first taxable value will be calculated and then basic exemption will be deducted. Hope it will clarifies. Thanks<br> Di....

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