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TMI BlogNet payment calculation for a petty work?X X X X Extracts X X X X X X X X Extracts X X X X ..... Net payment calculation for a petty work? X X X X Extracts X X X X X X X X Extracts X X X X ..... r place. 3rd June, 2015 we received the final item with invoice dated 23rd may, 2015. If value of work is only 10000 (excluding taxes), what would be the net payment to the firm. Please answer with calculations. Reply By Rajagopalan Ranganathan: The Reply: Sir, If your turnover during previous financial year had exceeded the limit of ₹ 10 lakhs or is not likely to exceed during current ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial year then you need not pay any service tax on ₹ 10 thousand. otherwise you have to pay service tax whether service provided by you is petty or otherwise. Reply By ankur verma: The Reply: Dear Rajagopalan Sir, thank you for your response! Actually I'm working in a PSU and of course our company turnover is more than 10 Lakhs. My confusion is:- * Whether service tax will be 14% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this case or 12.36%. * For TDS:- base amount will be Value of work excluding service tax or Total invoice amount (which was issued in May i.e. with 12.36% service tax) or Value of work + 14% service tax Whether service tax is to be paid by us or the party. If possible please answer me with net payment calculation steps. Reply By Rajagopalan Ranganathan: The Reply: Sir, If you charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 100/- for the service provided then you have to pay ₹ 12.36 as service tax including education cess and Higher and Secondary Education Cess. for TDS purpose you have to take into account only ₹ 100/- being the gross amount charged for provision of service and it will not include ₹ 12.36. Similarly for calculating service tax you cannot deduct TDS amount from ₹ 100/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - I hope the above explanation is clear to you. X X X X Extracts X X X X X X X X Extracts X X X X
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