Service tax
This query is : Resolved
26 August 2014
there is a GTA who raises bil of Rs.100000(Freight) and not charged service tax in his bill because in this case reverse charge mechanism apply. A is the party who pay freight so he will calculate service tax and pay My question how to calculate service tax by Party A
OPTION 1
100000*25/100=25000
25000*12.36/100=3090
OPTION 2
100000*25/100=25000
25000*12.36/112.36=2750
if it is mentioned in contract that rate is inclusive of all taxes then which option is correct?
OPTION 1
100000*25/100=25000
25000*12.36/100=3090
OPTION 2
100000*25/100=25000
25000*12.36/112.36=2750
if it is mentioned in contract that rate is inclusive of all taxes then which option is correct?
Rupesh Jain
(Expert)
26 August 2014
option I is right
you can calculate 3.09% of the freight bill
25% X 12.36= 3.09%
you can calculate 3.09% of the freight bill
25% X 12.36= 3.09%
26 August 2014
the ans is 3090........................
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