My vendor (Outsourcing agency) is charging us service tax on the complete value of the outsource bill, whereas the agreed component, which is a salary + statutory, amounts to Rs. 8000/-. In addition, there are 10% service charges paid to my vendor, totaling Rs. 8800/- paid to him on a monthly basis.
My question is: should the service tax be levied on Rs. 800/-, which is the service charge, or on the total Rs. 8800/-?
We are not able to get any clarification on the same. Can you please help us?
Sekhar
From India, Madras
My question is: should the service tax be levied on Rs. 800/-, which is the service charge, or on the total Rs. 8800/-?
We are not able to get any clarification on the same. Can you please help us?
Sekhar
From India, Madras
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Service tax would be on entire amount i.e. 8800, not only at 800 as we are also using an outsourcing agency & paying the service tax on entire amount. We checked woth our legal person also.
From India, Mumbai
1From India, Mumbai
It will be taxable on the gross value i.e. Rs.8800/- in your case. This is w.e.f. 16-06-2005.
From India, Calcutta
From India, Calcutta
Please post the relevant notification number for total outsourcing of services. For total outsourcing, I hope the reverse tax mechanism does not apply. Please do help me with the relevant notifications.
From India, Bangalore
From India, Bangalore
Service Tax is chargeable on gross bill. From June 15 Principal Employer will have to deposit the full Service Tax not the vendor
From India, Delhi
From India, Delhi
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