My vendor (Outsourcing agency) is charging us service tax on complete value of outsource bill. Where as the agreed component which is a salary + statutory is coming to Rs.8000/-. Over and above there is 10% service charges are paid to my vendor, which is coming to total of Rs.8800/- paid to him on monthly basis.
My question is the service tax to be levied on Rs.800/- which is service charge or 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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My question is the service tax to be levied on Rs.800/- which is service charge or 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
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1From India, Mumbai
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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
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From India, Calcutta
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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
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From India, Bangalore
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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
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From India, Delhi
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