Doubts about Service Tax ?

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Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2011 Hi,

I'm working with an Advertising Company.

I need to have a clarity about charging/calculating a service tax.

Q: Shall we consider n calculate service tax on net earning amount of deal?

Or On gross earning amount of deal?

If you could mail me answer on the same along with the supporting declaration ( if any),will be appreciated.

Regards,

Rajesh Kumar

Rajesh Kumar (Expert)
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14 February 2011 Service Tax is to be charged on gross amount, including reimbursement if any.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2011 Hi Rajesh,

Thanks for your reply.Is there any valid document where the same is clearly mentioned.

Why I'm asking this is because...

In few cases where we pass on some discount to our client,then they ask us to charge Service tax on after discount amount i.e. Net and not on the Basic/Gross amount.

In that particular time we do not have document to defend our point.

So,I would like to request you that if there is any document supporting to the particular point,please let me know.

Regards,

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