Service tax

Service Tax (Legacy) 256 views 3 replies
service tax applicable on on additional bill of Fixed Allowance paid during the month beside regular payment
Replies (3)

Your question is not clear. Can you please specify the nature of payment in detail.

WE ARE HAVING CONTRACT WITH HPCL, WHEREIN THEY ARE HAVING COURT PROTECTED LABOUR WITH THEM, FOR WHOM WE HAVE TO PAY EXTRA MONEY BESIDE SALARY TREATING AS ADDITIONAL ALLOWANCE.  WHILE BILLING WE HAVE TO MAKE SEPERATE BILL FOR THIS ADDITIONAL ALLOWANCE. I WANT TO KNOW DO I HAVE TO ADD SERVICE TAX ON THE SEPERATE BILL RAISED FOR THIS ADDITIONAL ALLOWANCE.

 

I understand that you are providing man power supply services to HPCL and currently paying service tax on the salary of labour. However, no service tax is paid in respect of additional charges like social security, reimburesements etc.

The definition of consideration includes reimbursement of any nature in relation to service. Hence, service tax would be payable on the entire value of the contract including additional charges or reimbursement. Billing additional charges through a separate bill wouldn't change the position.

Hope you got the answer.


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