Service Tax

694 views 5 replies

Hiii...

I have a question...

Suppose XYZ Ltd is providing knowledge based services to A, B, C, D, E, & F companies, and all these companies are group companies. Now at the time of billing XYZ is using Cost + Margin Method. I mean if my cost is Rs.100/- then we are charging Rs.10/- as Service charges.

So my question is shall i charge Service tax on.....

Rs.10/- ...... or

Rs. 100/-... or

Rs.110/- (Cost + Service charge)

Waiting for your reply. It would b great if u could give us some examples.

 

Have a nice day !

 

Replies (5)

of course on Rs.110/- (Cost + Service charge)

service tax is applicable on gross value charged for services and hence service tax will be charged on Rs. 110/-

Service tax will be applicable on Rs. 110.

another question...

Is service tax applicable on out of pocket expenses ??? Yes or No and Why ???

Waiting for valuable comments..

u will charge service tax on the gross amount, its mean service tax shall be charged on Rs. 110

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details