TMI BlogService Tax Basic ExemptionX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Receipts of Works Contract Service during the year = ₹ 30,00,000/- Which of the following method should be used for calculating service tax liability 1. (30,00,000-10,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) x 40% x 12.36% = 98,880/- or 2. [(30,00,000 *40%) - 10,00,000 ] x 12.36% = 24,720/- Kindly guide in this matter at earliest if this is first year of business. Thanks. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By Deepak Aggarwal - The Reply = Dear Himanshu ji, In my opinion, first method will work- (30,00,000-10,00,000) x 40% x 12.36% = 98,880/-. Thanks - Reply By Deepak Aggarwal - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Dear Himanshu ji, Please ignore earlier reply. Correct position will be as per second method i.e. [(30,00,000 *40%) - 10,00,000 ] x 12.36% = 24,720/-. Reason is that works cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract service is covered by valuation rules. Valuation rules specifies that only 40% will be taxable value in case of Works contracts. So, first taxable value will be calculated and then basic exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption will be deducted. Hope it will clarifies. Thanks - Service Tax Basic Exemption - Query Started By: - HIMANSHU SHAH Dated:- 11-2-2015 Service Tax - Got 2 Replies - Service Tax - Discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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