Net payment calculation for a petty work?

[Asked by Guest]

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 firm. Please answer with calculations.

AI Summary

Service tax applicability for petty works depends on turnover; TDS must be calculated on the service value excluding service tax.
Service tax on a petty reconditioning contract is triggered if the payer's turnover exceeds the prescribed threshold; the invoice may reflect the effective rate including cesses. For TDS the gross charge for the service (value of work excluding service tax) is the base for deduction; service tax cannot be reduced by TDS and TDS is not computed on the service tax component.