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(Querist)
23 March 2009 My client is an event manager.
He charges hill fees as follows.

Material cost 1000
Transport cost 500
total 1500
Service charges 250
Gross amount 1750

I need to know if he has to pay service tax on Rs 250 or on Rs 1750????
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Dayal

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Dayal (Expert)
23 March 2009 All expenses incurred are towards providing the service.

The service tax will be on the total cost ( Gross amount).

Reason all expenses are supporting the provision of the services.

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