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What should be the service tax rate?

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Debarshi Bhattacharjee

partner

23 Points Posted on 14 March 2012

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 ......

Replies (5)

OFFICESELVA

Service

498 Points Posted on 14 March 2012

The ST charges is correct. But you show the 10%, 2%, and 1% amount seperately in invoice.

Palash Gupta

Student...Hoping to pass Inter

643 Points Posted on 14 March 2012

The biling is RIGHT nt WRIGHT...!hehehe

sreenath

Articled Assistant

203 Points Posted on 16 March 2012

The Billing is Right, You Have to check the service tax is applicable or not ? for the Services your company is provided.

Ravishankar K

Accountant

334 Points Posted on 20 March 2012

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.