liability of service tax payment, Service Tax

[ANIL KUMAR]

Respected Sir

Please give suggestion regarding service tax liability payment by service recipient.

Whether we pay service tax on gross value or excluding service tax charged by service provider.

Details of Manpower bill are as follows

Total bill Value :- 26870/-

Service tax charged by service provider on 25% of bill value :- 830/-

Gross Value :- 27700/

Either we (Service Provider) pay service tax on Gross value i.e on 27700/ or Bill Value i.e on 26870

Please clarify.

Regards

Posts / Replies

[PAWAN KUMAR]

Dear Sir,

As per my view, service tax is to be charged on bill value i.e. 26870.

[Rajagopalan Ranganathan]

Dear Shri. Anil Kumar,

You have to pay service tax of bill value, that is, ₹ 26870/-.

[Naveed S]

Yes Sir, the submission made above by learned friends is true.

(However, department would not mind if you pay service tax on Gross Value...)

[Rajagopalan Ranganathan]

Dear Shri. Anil Kumar,

I apologize for the typing error that has crept in my previous reply. You are liable to pay service tax on 75% of the bill value, that is, ₹ 26870/-.

[Pradeep Khatri]

Dear Anil,

Service Tax under PRCM would be payable by you on the 75% value of the basic Invoice Value i.e. INR 26870/-

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[RAHUL SETHIA]

Dear Mr. Anil,

According to me, service tax should be charged on bill value, which in your case is ₹ 26870/-. simply putting, service tax cannot be charged on service tax itself.

Regards,

Rahul