Planning to reduce service tax to our clients...urgent sir..
This query is : Resolved
11 December 2011
Dear Experts,
We are an advertising agency. We do advertisement service to our clients. It involves some art work, event work etc. My doubt is on the way of invoicing.
1) If we give the invoice to our clients by giving the details of cost separately and service charged then is it sufficient if we charge the service tax only for the service amount alone?
2) a)While providing the details of cost of materials is it necessary to give the actuals of the cost? b) Whether can we have some profit amount in that cost components on materials and do we need not collect service tax on the profit element of the materials?
Thanks & Regards,
Rajesh
We are an advertising agency. We do advertisement service to our clients. It involves some art work, event work etc. My doubt is on the way of invoicing.
1) If we give the invoice to our clients by giving the details of cost separately and service charged then is it sufficient if we charge the service tax only for the service amount alone?
2) a)While providing the details of cost of materials is it necessary to give the actuals of the cost? b) Whether can we have some profit amount in that cost components on materials and do we need not collect service tax on the profit element of the materials?
Thanks & Regards,
Rajesh
18 December 2011
Replies are as follows :
1) Yes if you can seperate the material cost & service cost in the invoice then you can charge the service tax on service cost only thereby reducing the cost to your clients.
2) While providing the cost of materials you can added the cost of the components of materials. But beware of the VAT provisions. VAT rates in Gujarat state are normally 5% levied on sale of materials. Hence you will have to pay VAT on sales of materials. You will need to collect VAT & pay the same instead of service tax if you are selling VATeable materials.
1) Yes if you can seperate the material cost & service cost in the invoice then you can charge the service tax on service cost only thereby reducing the cost to your clients.
2) While providing the cost of materials you can added the cost of the components of materials. But beware of the VAT provisions. VAT rates in Gujarat state are normally 5% levied on sale of materials. Hence you will have to pay VAT on sales of materials. You will need to collect VAT & pay the same instead of service tax if you are selling VATeable materials.
Message likes :
1 times
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
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- TDS Challan Code
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- SGST balance is there in credit ledger how to adjust for cgst
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
