Hi,
I am working in a private limited company where we have given some data entry work to some outsiders. They are submitting bills as below:
Salary Reimbursement Rs.100000
Service Charges Rs.10000
Service Tax ( @ 10.3%) Rs.11330
My query was whether service tax to be charged on full amount i.e,1,10,000 or service charges amount only i.e, Rs.10,000
Please suggest me on above matter
Dear Bhanuprasad,
As the data entry work is outsourced, irrespective of the way the billing is done (calling it as Sal Re-imb), the full amount will attract service tax. Hence the ST on 1,10,000 is correct.
Thanks,
Ganesh
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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