Manager (F&A)
34 Points
Joined March 2015
The Service Tax will be applicable on transportation contracts as follows:
Your basic bill Rs. 20,00,000
Less: Abatement amount @ 70% on your basic bill Rs. 14,00,000
Value of Service Tax applicable Rs. 6,00,000
Service tax @ 14.5% on Rs. 6,00,000/- Rs. 87,000
You have to collect Rs. 20,87,000/- from your client and remit Rs. 87,000/- to the department on account of service tax.