Amount billed is $ 100 @ Rs.50/- per $
service tax charged $ 12.36 (i.e Rs. 618/-)
Total amount receivable = $112.36 ( i.e Rs. 5,618/-)
At the time of receipt
1$ = Rs. 48/-
thus Actual Recipt = Rs. 5393
my question is-
on what amount is service tax payable??
should we work out reverse calculation i.e 5393/112.36*12.36 and pay rs. 593/-
or have to pay full rs. 618/-
please reply asap
Do you mean you have raised an export invoice to your foreign client. If its export of service there is no service tax levy assuming certain conditions are complied with. Or you have imported some service and want to compute service tax on reverse charge.
Thanks,
If conditions of Rule 6A of Service Tax Rule, 1994 are satisfied then it is Expoet of service and no service tax on export of service....
If it is not coverd in above then you hav to pay full Rs 618 as service tax...
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
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