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Maths

Biju.V (Accountant) (128 Points)

08 December 2009

Somebody pay an amount of 6000 towards course fees including service tax of 10.3%. To Segregate this 6000 to fees and tax amount we divide 6000/1.103

My question is how do we get this 1.103????

Please help me

thanks in advance

Regards,

Biju

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13 Replies

Biju.V (Accountant) (128 Points)
Replied 08 December 2009

Please help meeeee

Punit Tibrewal (student ) (1684 Points)
Replied 08 December 2009

6000/(100+10.3)%

= 6000/110.3%

= 6000/1.103

CA Trinath Galla (student) (3130 Points)
Replied 08 December 2009

hey biju...dat 1.103=110.3/100. as it i sinclusive of service tax, we should take the entire amount as 110.3%. therefore fees=6000*100/110.3 i.e., 6000/1.103.

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Biju.V (Accountant) (128 Points)
Replied 08 December 2009

Thanks Punit

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 08 December 2009

Dear biju if you divide 110.3 by 100 (i.e. 110.3%) you'll get 1.103.

Deep@k $ingh@l (CA>FINAL May'14) (595 Points)
Replied 08 December 2009

In ths question service tax is included with fee. Thus to find out actual amount of fee, we divide total fee by 110.3% i.e. 110.3/100. Thus it becomes 1.103 Ok

Biju.V (Accountant) (128 Points)
Replied 08 December 2009

Thanks Trinath

Biju.V (Accountant) (128 Points)
Replied 08 December 2009

Thanks Prabeer

Ridhi (job) (63 Points)
Replied 08 December 2009

10% is service tax rate + 2% edu cess and 1% higher edu cess on dis 10% (say total 3%)=10.3% total tax

then suppose Rs. 100 is da value of service rendered then, there would be Rs.10.3 service tax so the total amout to be charged including service tax will be 110.3

Now we have paid 6000 as total amount so it is equivalent to 110.3 so v divide 6000 by 110.3 and now if we multiply it by 10.3 we get the tax and if we multiply it by 100 v get da amout of service rendered excluding tax

(6000/110.3*10.3=service tax ) (6000/110.3*100=value of service rendered excluding tax)

i hope it helped u