Service tax on gta


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Querist : Anonymous

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Querist : Anonymous (Querist)
25 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


25 August 2014 Option 1 is correct.

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 August 2014 if it mentioned in contract that the rate is inclusive of all taxes then which option is correct
option 1 or 2

24 July 2025 https://docs.google.com/document/d/14YG-q68nlye-HL6ER_Ji1QzkCIq5AG7Xj-fabWrK7uk/edit?usp=sharing


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