liability of service tax payment

[ANIL KUMAR]

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

AI Summary

Service tax valuation: charge on invoice value excluding tax component, not on gross amount under PRCM.
Service tax is levied on the invoice or bill value and not on the service-tax element itself; for manpower-supply services under PRCM the taxable base is the bill value (75% of basic invoice value in the example), and service tax must be calculated on that amount rather than on the gross sum that includes the tax.