Geetha N (Student CA CPT ) (54 Points)
18 March 2015Can the man power supply agencies( service provider) charge both service charges and service tax on the bill to a service receipient? If yes , will he be correct to charge service tax on basic amount+service charges*service tax at 12.36%. Please reply.
Sumit Pratap Singh
(Accounts Officer)
(48 Points)
Replied 18 March 2015
Dear Geeta,
First ascertain the legal form of entity
If service provider is a body corporate, then he can charge service tax @ 12.36% on service charges in the invoice.
On the other hand, if service provide is other than body corporate, then service provider should charge service tax @ 3.09% on service charges.
Geetha N
(Student CA CPT )
(54 Points)
Replied 18 March 2015
Dear Sir,
Can the service provider charge service tax at 3.5% on DA/TA allowance given as remuneration to man power supply.?
CAclubindia
