Taxes

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2014 Please briefly explain reverse calculation of Service tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 December 2014 On Commission We Need To Pay 12.36% If I Get A Commission Of 2154 Which Is Including 12.36% How Do I Calculate?

If commission is inclusive of tax, you can get the tax amount by using the following formula: 2154* 12.36/112.36 = Rs. 237 /-

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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22 December 2014 Reverse Charges Mechanism means service receiver is also responsible for payment of service tax directly to Government of certain services.

For better understanding you can read notification no 30/2012 dated 20th June, 2012 Service Tax