Hi guys.
i just watned to ask if the service tax will be calculated in the whole amount of payment to be recived or do we minus the expenses of a service provider.
For example if the total payment coming in is £ 100.00
ANd the service provider has incurred £ 80.00 worth of expenses in providing this service.
would the whole £ 100.00 be taken into considerstaion for service tax?
OR
Would the £ 20 would be considered for service tax?
The Service providor will charge service tax on whole amount & must have take cenvet invoice for expenditure incured for providing the service & can avail the benefit for the payment of service tax
Genrally the service tax is charged on the amount placed in invoice, however if there is no any specific abatement available to the particular service which is provided. So service tax is attracted on 100 and not on 20 . So it is chargeable on the taxable amount and not after considering the expenses. But if the expenses incurred by the service provider includes the payment of service tax to such other person while providing the service then it can be claimed as CENVAT credit and be adjusted with service tax payable amount.
service tax would be payable on the whole amount..
| Originally posted by : sriraghavan | ||
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Genrally the service tax is charged on the amount placed in invoice, however if there is no any specific abatement available to the particular service which is provided. So service tax is attracted on 100 and not on 20 . So it is chargeable on the taxable amount and not after considering the expenses. But if the expenses incurred by the service provider includes the payment of service tax to such other person while providing the service then it can be claimed as CENVAT credit and be adjusted with service tax payable amount. |
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Agreed,
CAclubindia
