11 June 2011
If a person providing service as men supply to a organisation. Way of payment is total wages of labour actualy incurred plus 7.5% as a commission to service provider.
Now question is on which amount service tax will be charged, ie on commission of 7.5% or total amount wages+ commission.
11 June 2011
Service tax is to be levied on the bill amount ie., on wages plus commission. Para 22.4 of Circular F. No. B1/6/2005-TRU dated 27/07/2005 may be referred to.