Method of calculation of service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 April 2015
there is a party providing legal service
party produce bill of Rs 600000
in bill not mention service tax component
now second party need to caculate service tax
which option should second party apply for calculating ST
Option 1
ST= 600000@12.36%
Option 2
ST = 600000@12.36/112.36
party produce bill of Rs 600000
in bill not mention service tax component
now second party need to caculate service tax
which option should second party apply for calculating ST
Option 1
ST= 600000@12.36%
Option 2
ST = 600000@12.36/112.36
05 April 2015
Service Tax applicable under Reverse Charge.
Service Tax @ 12.36% of Rs 600000/-
= Rs 74160.
Service Tax @ 12.36% of Rs 600000/-
= Rs 74160.
Kaushik Joshi
(Expert)
05 April 2015
In case where no service tax component is separately mentioned in the invoice, the amount of Rs.600000/- above is considered as inclusive of service tax.
Hence, Option 2,i.e.
ST=600000@12.36/112.36 applies in your case.
Also It would be wise for you to confirm with the legal firm regarding the amount of service tax and the professional fee payable by you and the method you wish to adopt.
Hence, Option 2,i.e.
ST=600000@12.36/112.36 applies in your case.
Also It would be wise for you to confirm with the legal firm regarding the amount of service tax and the professional fee payable by you and the method you wish to adopt.
CMA Ramesh Krishnan
(Expert)
06 April 2015
Incase you have to calculate service tax under RCM, you need to calculate the service tax on total value of Rs.6 Lakhs as advice Mr. Sanjay ji.
If it is regular service tax (other than RCM category) if party is not mentioned the service tax separately, you have to refer the agreement between you and the party,if the agreement says the price is inclusive of service tax then you can do the back calculation, if the agreement service tax applicable extra. then you can do the option 1.
If it is regular service tax (other than RCM category) if party is not mentioned the service tax separately, you have to refer the agreement between you and the party,if the agreement says the price is inclusive of service tax then you can do the back calculation, if the agreement service tax applicable extra. then you can do the option 1.
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Tax on Amount transferred in HUF Account
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
