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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 ..... A petty work was given by me to a partnership firm Y for recondition work of some equipment. The work involves collection of equip from our site, shifting to their workplace, reconditioning and again bringing back to our place. 3 rd June, 2015 we received the final item with invoice dated 23 rd may, 2015. If value of work is only 10000 (excluding taxes), what would be the net payment to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm. 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 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 otherw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise. - 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% 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% s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice 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 ₹ 100/- for the service provided then you have to pay ₹ 12.36 as service tax including education cess and Higher and Secondary Education Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. 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/- I hope the above explanation is clear to you. - Net payment calculation for a petty work? - Query Started By: - ankur verma Dated:- 29-7-2015 Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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