Tax on service charges
This query is : Resolved
02 July 2013
sir, please tell me its urgent,our client received carriage & forwarding charges i.e. Rs.100 per unit, these carriage & forwarding charges consists of labour loading, unloading,freight paid for local carrying truck/trolly,rent paid for storage plus extra genuine charges per unit. our client pays service tax on net service charges of Rs.10 after deducting above expenditure.
Now service tax deptt. says that assesee is liable to pay tax on whole amount of bill i.e. Rs.100 without deducting expenditure.
Please tell what is the correct provision of service tax.
Now service tax deptt. says that assesee is liable to pay tax on whole amount of bill i.e. Rs.100 without deducting expenditure.
Please tell what is the correct provision of service tax.
Ganeshbabu K
(Expert)
02 July 2013
,Yes.. even in my opinion service tax has to be paid on total Rs.100/-
because service tax is to be payable on gross amount charged to client
if re-imbursement expences are claiming in seperate invoices and bills for expences paid by him were provided to client service tax not applicable on re-imbursement expences..
so in your case it seems service tax applicable on 100/-
because service tax is to be payable on gross amount charged to client
if re-imbursement expences are claiming in seperate invoices and bills for expences paid by him were provided to client service tax not applicable on re-imbursement expences..
so in your case it seems service tax applicable on 100/-
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Import Order Cancelled.
- Working on Gold wastage during Melting of old gold jewellery
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Royalty payments to the Mining Department for procurement of murum - GST input
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
