How to calculate service tax when we recd. lesser amount

This query is : Resolved

Guest

Guest (Querist)

13 November 2009 Sir/Madam

I want to know that if i have service tax registration no. & raised a bill for say Rs 100 & chg ser tax @ 10.3 % on it total comes to 110.30 to one of my client

Now my client pay to me 100/- only

whats my service tax liability

if u have any reference of any circular so please provide me

its urgent

so please reply as early as possible

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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13 November 2009 Now you should assume 100 is inclusive of tax.

Ie tax = (100*10.3/110.3)= 9.30

Your receipt is = 90.70

You have to rasie a debit note

for service = 9.70
Tax 1.00

sunil

sunil (Expert)
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29 March 2012 if i have raised a bill for Rs.1000000 for construction service which is inclusive of all taxes.whether under mentioned calculation is correct? 1000000*33%=330000. 330000*10.3/110.3=Service tax payable inclusive of Education and higher education cess =30816.. Please reply