Dear sir,
I am in chennai a software service provider for a client in Bangalore. I got a order aof 6 lacs in this quarter (apr-Jun 2014) and received the amount also. Actually the client in bangalore has outsource the job to me which he got from some other company at a higher rate. How to pay service tax in my case. Has i have to pay 12.36% or 50% , or my client has to pay?. suppose if my client got the order for 8 lac with a margin 2 lac for him how will he account for the excess amount he received.
My self (partnership firm)and my client (pvt ltd)both have service tax registration and pay for our normal direct activities.
Please give me the answers..
Rajan
CAclubindia
