Service tax payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2015 Dear experts,
I am paying ST on receipt basis, however i have taken contract and i have purchased the materials of rs 35000 from contractee, after completed the contract i have issued the invoice of rs. 38500 for materials, 20000 service charge and 2800 ST, total 61300, but contractee has deducted rs, 35000 of materials from bill, and balance 26300 paid to me, plz tell me on the receipt basis on which amount do i need to pay ST

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 October 2015 You have to pay 14% service tax on 40% value of 58500(35000+26300-2800).

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2015 Dear sir, why we need to pay ST on 40% of 58500, including materials however i have given 20000 service portion which is actual service charge, sir i think ST is applicable on service portion ie. 20000, plz clarify in details,

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