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simple question of Service tax

IPCC 947 views 6 replies

hello friends./././

1 Mr X a company secretary provides taxable professional services to one of its clients. in lieu of rendering such services, Mr, charges Rs. 10,000 in lumpsum from its client and also asks its client to give him a law book worth Rs. 2,360.

 

what will be service tax payable./././ How???

Replies (6)

gross amount = rs.12360

Yes Rs.12360/-

Taxable service received as a non monetary compensation is also taxable.

if Rs. 2360 is the worth of the book then the CS has to pay tax on that as well

yes, service tax shall be calculated on gross amount .i.e. Rs.12360.

Mr.X has to pay service tax  @ 10.3% on Gross amount of Rs.12360/-.

service tax payable is rs  12360/110.3*10.3 i.e.    Rs  1154

this question is of the time when the service tax was levied at 12%..

SO...consideration received  is divided into - gross amount = 10,000 (+) service tax = 2360


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