Calculation of service tax on consultancy project
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
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 ?
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 ?
31 July 2015
You are required to pay service tax on 10 lacs excluding chemicals and consumables.
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