Hello friends ,
I have billed my client 10.3% of service tax on the gross billing amount..
Example:
News paper release Package : 1,50,000.00
our designing charges : 25,000.00
sub total- 1,75,000.00
Service tax: 18,025.00
Total: 1,93,025.00
IS THIS BILLING IS WRIGHT , OR WE HAVE TO CHARGE THE SERVICE TAX ONLY ON OUR COMMISION FROM NEWS PAPER AND THE DESIGNING CHARGES .
PLEASE HELP US OUT ......
The ST charges is correct. But you show the 10%, 2%, and 1% amount seperately in invoice.
The Billing is Right, You Have to check the service tax is applicable or not ? for the Services your company is provided.
i think you are some advertiser and have placed the order of customer with the newspaper company, so the amount paid by you to newspaper company should not be chargeable ? BEcause you collected 150000 from client company and paid some 130000 to newspaper company for ad releasing only stax on designing charges should be levied. Someone please correct and explain me if i am wrong.
Mr. Ravishankar is rightly said because in advertising company, service tax is leviable only on net value.
CAclubindia
