12 February 2016
The invoice from the Manpower Supply Company is for Rs.481,244/-. As per the provisions of Finance Act 1994 as amended by Finance Act 2015, in computing the value of services rendered all reimbursement of expenses (except in the case of Pure Agents) is to be added to Basic Service Value. As far as your company is concerned, it will pay the company providing Manpower Services the total sum of Rs. 481,244/- less TDS.
The Service Tax payable is 14% on Rs.481,244/- and 0.5% Swatch Bharat Cess on the same amount.
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