Service Tax Query

If in  case, Telephone Bill of Company paid by one Agent around Rs.3,000/-*** & against that transaction he raised bill with addition his fees as Rs.1,000/-***.

 

At the time of bill raising:

a) Can he charge Service Tax on Rs.4,000/-?; OR

b) Can he charge Service tax on Rs.1,000/-.

Replies (5)

 

Service provider can  include reimbursement of expenses and he can charge service tax including reimbursement expenses.

The service provider will raise the bill only for the services rendered by him

ie: The bill will be Rs1000/- + Service Tax

Originally posted by : Chinmay

If in  case, Telephone Bill of Company paid by one Agent around Rs.3,000/-*** & against that transaction he raised bill with addition his fees as Rs.1,000/-***.

 

At the time of bill raising:

a) Can he charge Service Tax on Rs.4,000/-?; OR

b) Can he charge Service tax on Rs.1,000/-.

Telephone bill is of company and agent has just paid it, so he can reimuburse the same only, he can not issue invoice against / for this bill.

 

regarding his charges he can issue invoice for 1000/- for whatsoever services he has tendered and would charge servicetax, if the service is under servicetax net. 

Service tax has to be charged on the gross amount billed. Hence service tax is chargable on Rs.4000. However when the person is acting as pure agent then service tax need not be charged on Rs.3000

Thanks to all.........

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
FOLLOW
US ON