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Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2013 my company is a pvt ltd co. and it is a hospital. we hire man power for house keeping and security guards. under reverse mechanism i have to pay 75% of service tax. I am in confusion regarding what will be the amount onwhich ST has to be paid. the billing is as follows:

salary 6000*45 = 270000
Provident fund @ 12% = 32400
ESI @ 4.75% = 12825
Commission @ 10% = 31523

Total = 346748
Pls clarify the amount on which ST has to be calculated and remitted.
Some say that it has to be paid on 346748,
some say that it has to be paid on 31523.
Which is right? I feel that 31523 is the right amt because salary, PF and ESI are not services but only reimbursement of expenses.

Thanks a lot in advance.

CA bhargava

CA bhargava (Expert)

22 January 2013 In the above transaction., does the staff are your employees or the employees from outside., if they are your employees only., then., you need to pay service tax only on the commission part only., and if they are not your employees., also you may resort to pay service tax only on the commission part only

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