Service tax on bpo/callcentre service

Queries 842 views 2 replies

shiv pandey

service holder

31 Points Joined January 2009

Dear Friends

Company is operating callcentre in India Providing Service to Person out side India for computer system maintenance, receiving payment through payment gateway.

for this purpose the company receive service from google and pay the fee allong with service tax.

Because the nature of business, the company can not collect servise tax separately from the person outside indai.

being now BPO/Callcentre are covered in business auxilliary service the company is liable to pax tax ?

Now My Question is..............

1) Whether Callcentre is liable to pay Service Tax ?

2) How the service tax will be calculated ?

3) do the credit of service tax paid to google may be utilised for service provided?

4) Any other procedure in your opinion ?

Regards

Shiv

Replies (2)

PRITAM JAIN, CA , CS

Practising CA CS

398 Points Joined September 2007

Hi Shiv,

1) Since service provider is outside india and service is being provided in india. Here service reciptient is liable to pay service tax.

2) Service tax is to be calculated on the total amount of fee charged by google

3) This service tax paid can be treated as Input Tax and can be set off against output tax

Regards

If i m charging from an Indian holiday provider on per desk basis..where i m paying salary,rent,electricity bills, telephone bills etc from my pocket...If i m charging 50,000=00 per desk.how i will calculate service tax...on per desk cost or on profit only...pl specify calculations in details