31 July 2015
I have been offered a consultancy project by a private industry with a total cost of 18 lakhs under various heads:
i) Consultancy fee: 5 lakhs ii) Salary for the manpower to be hired for the work: 4 lakhs iii) Chemicals and other consumlables to be used for the project: 8 lakhs iv) Travel: 0.5 lakhs v) Hiring Services: 0.5 lakhs
The purchase of chemicals and other consumables for the implementation of the project involves the payment of VAT too.
Please advise which "heads" of the project are covered under service tax. Am I supposed to pay the service tax on the total cost ?