20 December 2007
We asre provided manpower dor catering and various other functions by Caterer. The amount paid to him includes Salary to the workman, statutory obligations like P.F., E.S.I., Bonus etc Admins charges @ 10 % of the total amount. Service tax is charged on the total amount paid to the caterer. The Act says that Service Tax should be on the Gross Amount subject to exclusion of reimbursements. Is it right to charge Service Tax on the entire amount or should it be after excluding salary and related costs?
CAclubindia
