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. 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.
Service Tax and TDS Calculation Explained for Partnership Firm with Turnover Above 10 Lakhs A user sought advice on calculating net payment for a reconditioning service provided by a partnership firm. The service was invoiced at 10,000, excluding taxes. A respondent clarified that if the company's turnover exceeds 10 lakhs, service tax applies. The user, working in a PSU, queried whether the service tax rate was 14% or 12.36% and how to calculate TDS. The respondent explained that service tax should be calculated on the gross amount, excluding TDS, and clarified the applicable service tax rate and calculation method. (AI Summary)
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