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
Service Tax Calculation: Determine Liability Based on Bill Value of 26,870, Not Gross Value of 27,700. A service recipient inquired about the correct basis for calculating service tax liability, questioning whether it should be on the gross value of 27,700 or the bill value of 26,870. Multiple respondents advised that service tax should be calculated on the bill value of 26,870, with one noting that service tax cannot be charged on itself. Another respondent clarified that the tax is payable on 75% of the bill value. The discussion emphasized the importance of calculating service tax on the bill value rather than the gross amount. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
