I wanted to understand the rounding off for Service Tax computation. As I understand service tax, when we say 10.3% - it actually has 3 components - 10% Service Tax, 2% Education Cess on the service tax amount and 1% Higher Education Cess on the service tax amount.
Now when we generat an invoice to a customer, say of Rs. 12345/- as base charge and then if add there components - viz Service tax @ 10% =1234.50, 2% Ed. Cess = 24.69 and 1% Higher Ed. Cess = 12.34. In the Invoice are we put these fractions for all these and then do a round off in the final total or do we round off each individual tax entities to closest Rupee?
Thanks,
Umesh