Hi,
In the Bill of a Contractor who supplies labour to manage the gaming department, he charges Service Fee over and above the Salary of the labour. The Bill Data looks like this;
Salary XXX
Service Fee XXX
Total XXX
ST @ 12.36 XX (On Total Amount)
Kindly advice me if the ST should be charged only on Service fee or on the Total as per Bill.
Thanks in advance :)
The service tax shall be chargeable on the total bill. However, the tax liability shall be divided between the service provider and the service receiver in ratio of 25:75 as per the Notification No. 30/2012-Service Tax, dated 20.06.2012.
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Agree to some extent with Manish,
As to add in his comment, for applying the ratio of 25:75, the contractor shall be a non-body corporate (such as partnership firm, individual proprietary concern) and the service receiver shoulud be a body corporate (such as Company).
Please revert if you still are not clear.
ok... got it..
Thank you Vikas and Manish.
But there is another query relating to d same subject:
This Gaming Dept is inside a Mall and this gaming dept and the mall both are run by the Same Company. Now Gaming Dept doesnt have an output service tax but Mall has an output Service Tax on d Maintenance it charges to the Shops. so can This labour Input Service tax of the Gaming Zone be setoff against the Maintenance output service Tax from the Shops?
As the assessee is same, the Cenvat credit can be utilized.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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