On which value threshold exemption will be available

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... On which value threshold exemption will be available
Query (Issue) Started By: - Rajesh Sharma Dated:- 10-2-2013 Last Reply Date:- 15-2-2013 Service Tax
Got 3 Replies
Service Tax
Sir, My question is that, a Bar restaurant is providing taxable services, they did business of Rs.30.00 lacs in the last financial year 2011-12. How they will calculate their taxable value while getting the b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... enefit of threshold exemption of Rs.10.00 lacs :- (i) whether first they have to less (Rs.30.00 lacs - 10.00 lacs) from Rs.30.00 and then on remaining Rs.20.00 lacs they have to pay service tax on the abated value i.e. on Rs.9.00 lacs, as abatement is 70%) (ii) or they have to calculate their taxable value taking into consideration of abatement i.e. (after abatement of 70%, taxable value on Rs.3 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 0.00 lac will be 9.00 lacs) and thus they will be exempted from service tax. Waiting for your reply. Reply By CA Seetharaman K C: The Reply: Threshold exemption is available on the gross value i e 30 Lakhs and tax shall be payable on the balance amount of Rs 20 Lakhs, Tax would however be payable on the net taxable value after availing the abatement as per the abatement notification Reply By R .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ajesh Sharma: The Reply: Thannk you sir for your kind reply. I am also of the same view, but some people think the option (ii) should be adopted. Reply By ANAND SHEMBEKAR: The Reply: Services by Hotel having facility of airconditioning and licence to serve alcoholic beverages , the services are taxable w.e.f. 01/05/2011. You have to see the taxable portion , SSP exemption etc in two different c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ontex of period 01/05/2011 to 30/06/2011 01/07/2012 till date Also to see the explanation given in respective SSP exemption notification about ' agreegate value' Thanks ANAND SHEMBEAKR CELL 942118711
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X