Service tax on manpower
This query is : Resolved
Arun Kumar
(Querist)
12 February 2016
Dear All Solve ASAP
Following is the bill from the Manpower Supply Company, please suggest me the Service Tax implications.
Earned Basic - 200677.00
Earned Gross - 398178.00
Total salary - 398178.00
ESI Contribution @ 4.75%- 15937.00
EPF Contribution @ 13.61% - 27311.00
Total Labour Salary - 441426.00
Service Charges @ 10% - 39818.00
TOTAL - 481244.00
Food Deduction - 9900.00
Gross Total - 471344.00
My Question is Service Tax is to be computed on which amount..?
Regards
Arun Kumar M H
Following is the bill from the Manpower Supply Company, please suggest me the Service Tax implications.
Earned Basic - 200677.00
Earned Gross - 398178.00
Total salary - 398178.00
ESI Contribution @ 4.75%- 15937.00
EPF Contribution @ 13.61% - 27311.00
Total Labour Salary - 441426.00
Service Charges @ 10% - 39818.00
TOTAL - 481244.00
Food Deduction - 9900.00
Gross Total - 471344.00
My Question is Service Tax is to be computed on which amount..?
Regards
Arun Kumar M H
Suresh Ramaswamy
(Expert)
12 February 2016
The invoice from the Manpower Supply Company is for Rs.481,244/-. As per the provisions of Finance Act 1994 as amended by Finance Act 2015, in computing the value of services rendered all reimbursement of expenses (except in the case of Pure Agents) is to be added to Basic Service Value. As far as your company is concerned, it will pay the company providing Manpower Services the total sum of Rs. 481,244/- less TDS.
The Service Tax payable is 14% on Rs.481,244/- and 0.5% Swatch Bharat Cess on the same amount.
The Service Tax payable is 14% on Rs.481,244/- and 0.5% Swatch Bharat Cess on the same amount.
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KAVIRAJA ADDANGADI
(Expert)
12 February 2016
Service tax on man power to be paid by service receiver under RCM. Tax to be paid on the gross amount of the bill. Rs.481244/-
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