TMI Blogtaxable serviceX X X X Extracts X X X X X X X X Extracts X X X X ..... What is taxable service means, is it the gross value of service rendered or value after abatement? Experts opinion is requested - Reply By Mahir S - The Reply = The value of taxable service means, the gross amount received by the service provider for the taxable service provided or to be provided by him. - Reply By Mahir S - The Reply = Q) What is meant by value of taxable service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? A) (I) Normally, the value of taxable service means, the gross amount received by the service provider for the taxable service provided or to be provided by him. Section 67 of the Finance Act, 1994 read with Service Tax (Determination of Value) Rules, 2006 , has to be followed to arrive at the taxable value. (II) For certain services, a specified percentage of abatement is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed from the gross amount collected for rendering the services, subject to the conditions, inter alia , that CENVAT Credit has not been availed by the service provider and cost of goods sold in the process of providing the subject service is not deducted in terms of Notification No. 12/2003-ST, dated 20.6.2003 . (III) There is also a composition scheme for works contract service , wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the person liable to pay service tax in relation to works contract service shall have the option to discharge his service tax liability on the works contract service provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act , by paying an amount equivalent to 4% of the gross amount charged for the works contract. - Reply By Ganeshan Kalyani - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Reply = Taxable service refers to service which is liable to service tax as per provision of Finance Act. The value on which the tax to be levied is taxable value. Tax is generally levied on taxable value. But by virtue of notification no. 26/2012 some services are enumerated to be eligible for abatement I.e. service tax shall be worked out on the value after abatement. - Reply By Ganeshan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani - The Reply = With effect from 01.07.2012, all services are taxable unless it is exempted by way of Notification and listed is negative list of services. - Reply By Pradeep Kumar - The Reply = Thanks experts. If we need to pay interest on delayed payment of service tax, what would be the percentage? Is it 18 or 15?? Please advice - Reply By Ganeshan Kalyani - The Reply = As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No 13/2016 dated 01.03.2016 , the rate of interest is as below: Serial Number Situation Rate of simple interest (1) (2) (3) 1. Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment on or before the date on which such payment becomes due. 24 per cent. 2. Other than in situations covered under serial number 1 above. 15 per cent. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = If the service rendered is eligible for abatement, the gross value is to be taken after abatement. - Reply By Pra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deep Kumar - The Reply = Experts, But our central excise range superintendent is having different opinion. They are telling that taxable service means value before any abatement. Abatement is the concession given by the government and it doesn't means that taxable service to be arrived after that abatement. Can you give expert opinion by quoting notification9s)/circular(s), if any, please ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Reply By Ganeshan Kalyani - The Reply = Pls. Refer Notification No. 26/2012 - Service tax. The circular is published by CBEC. The services enumerated in the said notification is eligible for abatement. The consideration received on taxable service rendered is liable to tax but if the service is covered under the notification then the taxable service to be reduced by such percentage as give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the notification. To my mind the superintendent would be referring to such service which is not covered by the abatement notification. - taxable service - Query Started By: - Pradeep Kumar Dated:- 13-10-2016 Service Tax - Got 9 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt - 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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