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???
gross amount = rs.12360
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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