My company is engaged in providing Maintenace and Repair services.While creating bill a portion is allocated to sinking fund.My question is whether service tax will be charged on total bill amount or amount excluding sinking fund??
My company is engaged in providing Maintenace and Repair services.While creating bill a portion is allocated to sinking fund.My question is whether service tax will be charged on total bill amount or amount excluding sinking fund??
Dear Masum,
It would be chargeable on the total amount as it would be a part of your consideration, beaing gross amount charged u/s.67 of the Act, received towards provision of services.
Further allocation of such amount to a Sinking Fund does not make any difference.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
