labour cess @1% impact on service tax

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..... labour cess @1% impact on service tax
Query (Issue) Started By: - ramkishore gupta Dated:- 28-12-2016 Last Reply Date:- 26-1-2017 Service Tax
Got 7 Replies
Service Tax
I wolud like to know that Labour cess deducted by Govt authority @1% on contract work bill will be included or excluded from computation of service tax amount. For eg if my total bill is 15,05,714.00 vat charged is &# .....

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..... 8377; 75282 and labour cess @1% is ₹ 15057.00 While computing service tax amt labour cess will be excluded or included???? Reply By KASTURI SETHI: The Reply: It is not the intention of Govt. to levy Service Tax on tax, cess or duty because it cannot be treated as part of consideration. You do not keep cess in your pocket. You collect cess and deposit with the concerned Govt. Otherwise al .....

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..... so tax on tax is never charged cess is also a kind of duty or tax. Reply By Ganeshan Kalyani: The Reply: The service tax is applicable on the consideration received for the services rendered. The labour cess is not a consideration. Hence not to be considered for payment of service tax. Reply By KASTURI SETHI: The Reply: I agree with Sh. Kalyani Ji, an expert. Reply By KASTURI SETHI: The Reply .....

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..... : Is labour Cess part of TDS ? If so, situation will be different. Sh.Ganeshan Kalyani, Sir can throw light on this whether labour cess is part of TDS or not. Reply By Ganeshan Kalyani: The Reply: Labour Cess is not to be considered for deducting TDS. Reply By YAGAY AND SUN: The Reply: Labour cess is paid on the Gross Value of the Contract and also the service tax shall be levied either on t .....

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..... he gross value of the contract net of abatement if any. For levying service tax, the Labour Cess shall not be considered. if service tax is shown separately then TDS under Income Tax shall not deducted on the amount of Service Tax. Reply By Ganeshan Kalyani: The Reply: I agree with the views of the experts. Thanks.
Discussion Forum - Knowledge Sharing .....

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