Q7
Service Provided
| Service to X Ltd | |
| Consultancy Service | 100000 |
| Add | |
| Service Tax @ 14% | 14000 |
| Swachh Bharat Cess @ 0.5% | 500 |
| Krishi Kalyan Cess @ 0.5% | 500 |
| Total | 115000 |
Expenses
| AIRTEL | Purchase from Y Ltd | Machine from Y Ltd | |||
| Telephone Bill | 2000 | Purchase | 40000 | Machine | 60000 |
| Add | Add | Add | |||
| Service Tax @ 14% | 280 | Excise 12.5% | 5000 | Excise 12.5% | 7500 |
| Swachh Bharat Cess @ 0.5% | 10 | Total | 45000 | Total | 67500 |
| Krishi Kalyan Cess @ 0.5% | 10 | Add | Add | ||
| Total | 2300 | Vat 5% | 2250 | Vat 5% | 3375 |
| Total | 47250 | Total | 70875 | ||
What is Service Tax Payable?
| Tax | Swachh Bharat Cess | Krishi Kalyan Cess | Total | |
| Output Service Tax | 14000 | 500 | 500 | 15000 |
| Less | ||||
| Input Cenvat | ||||
| On Input Services (Input Service tax on expenses) | 280 | 0 | 10 | 300 |
| On Inputs (Excise on purchases) | 5000 | 0 | 0 | 5000 |
| On Capital Goods (Excise on Machines 1/2) | 3750 | 0 | 0 | 3750 |
| Total Cenvat | 9030 | 0 | 10 | 9050 |
| Service Tax Payable | 4970 | 500 | 490 | 5960 |
Note :
In case of Fixed Assets used for providing services
Input is available called Input Cenvat on Capital Goods
Input is available in 2 years (50% in year of purchase and 50% in next year)
