calculation, Service Tax

[Ankit Sachdeva]

how to calculate net service tax ? what are the basics of calculation?

Posts / Replies

[Rama Krishana]

Refer to section 67 of the Service Tax (Chapter V of the Finance Act, 1994), the amount received is treated as gross value and by applying reverse method you can calculate net service tax. On the other side, when you are going to raise the bill, it is advisable (if your contract is not inclusive) you should charge service tax over and above the value of services. Thereafter the gross amount received by applying the reverse formula, you may get the same result.