Service Tax

Queries 676 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


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