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Sarvice tax calculation to avoid double taxation

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Prashant

Advisor

23 Points Posted on 24 February 2016

Party A provides service.
Service includes service provided by Part B.
Party B provides invoices including service charge.
Total invoice amount is Rs. X

Party adds its service charges of Rs Y
Total invoice to customer of Part B should be:

a. (X+Y) + Service Tax(X+Y)? [Note: Amount X already includes Service Tax]

b. (X+Y) + Service Tax(Y)?

c, Any other [Please explain]

Replies (1)

Prashant

Advisor

23 Points Posted on 29 February 2016

Hello. Any thoughts?

I'll ask again in simple language:

If I provide a service and that includes a third party service, should the service tax on my invoice be calculated only on the value I have added or on the whole amount.
[Service tax is already paid on the third party service.]