Discount on Bill
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 April 2010
If a service provider have provided discount on the bill, then whether service tax should be calculated on the Amount after discount or the service tax should be charged on the actual amount of service provided ? For example Input amount is 100 and service tax is 10.3 gross amount is 110.3 but the service provider has given discount of Rs.20 then whether the service tax amount should be reduced propationately or it should be 10.3.
CA. Ashish Bihani
(Expert)
16 April 2010
It depends upon the accounting policies of service provider to discount and charge service tax.
But the same can be done in following way -
Service Charge Amount
(-) Discount
(=) Net Service Charge Amount
(+) Service Tax on Net Service Charge Amount
(=) Total Bill Amount incl. Service Tax
But the same can be done in following way -
Service Charge Amount
(-) Discount
(=) Net Service Charge Amount
(+) Service Tax on Net Service Charge Amount
(=) Total Bill Amount incl. Service Tax
CA Ashok Kumar Sahu
(Expert)
16 April 2010
agreed, that is the better option
CA Ravi Sisodia
(Expert)
16 April 2010
yes that is good option.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Reward for festival
- Capital gain on commercial property and investment in residential property
- Import of Capital Machine
- ARCA LOGIN
- Rectification under processing even after 6 months cpc portal
- Gift to nri relatives resides in usa
- RCM and same line
- Closer of business and itc of capital goods
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
