Suppose Mr. X recieves Rs. 2500000/- for providing a service to abc pvt ltd. on which service tax is to be paid by service reciever.
What will be the amount of service tax to be deposited by ABC Pvt ltd:
a) 2500000*12.36% i.e. 309000/-
b) 2500000/112.36*12.36% i.e. 275009/-