Service tax rates

Queries 1137 views 9 replies

Dear sir, I am article assistant.During audit, I found that advertising agency is issuing bill to my client with service tax @ 1.854%.Does it have any impacts in my query since st should be @ 12.36% rather than 1.854%?

Replies (9)

Sir,

Recently case law forward to you.

 

I am not getting you sir, pls can u suggest me in more favourable way?

Sir,

It is fully taxable services. I d'nt know why raised s.t @ 1.854. For further clearification plz forward the bill formate i.e. Service provider & receiver name, value % S.Tax and  clear the any notification mentioned by him.

I search very carefuly but not trased the resulty in this regard

  

It would mean that the method of calculation is taken place on the amount excluding commission charged @ 15%.  See below Illustration:

9000        
166.86 At 1.854% direct @ 1.854%  
1350 AT 12.36% after commissioner @ 15%
166.86        

 

Regards,

JMS

Hey...how its after commission. ..it is charged on commission is it?

He asked only the method of calculation of tax of which charging directly on gross amount. I have explained how it has calculated by his agency and shown equalence of both method. U need to get that calculation method. Raising bills by Ad agency on their own and whatever they take method of calculation should be equal of tax liability. 

Regards,

JMS

15 % is commision on Advertisment amount, Service Tax attract only this portion 15 % of total amount

Service Tax including EC & SHEC is 12.36% ie  15*12.36% =1.854% 

 

Now Clear....

Can Any body tell me more exple like that type of srvc proydr but not same..

 

Dear Sir,
During Audit,I found that Standard Agency Commission @ 15% has been deducted in Advertisement Bill and again same amount has been added by the name Actual Agency Commission.Since there is no any impact in total amount,what is the relevance of this deduction and addition of commission?

 


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