TaxTMI 
TaxTMI 
Amount of Liability of Service tax
04 May 2006 
1 Reply 
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Service tax applies to the gross value of services, not the net amount after retention or tax deductions.
Service tax is payable on the gross value of the taxable service as billed; retention amounts and statutory withholdings do not reduce the taxable base, and liability remains on the full billed amount even if payment is received net of deductions. (AI Summary)
Service tax is payable on the gross value of the taxable service as billed; retention amounts and statutory withholdings do not reduce the taxable base, and liability remains on the full billed amount even if payment is received net of deductions. (AI Summary)
'B' a sanitary contractor raises a bill as to Gross work done for this bill Rs.600000/*and further deductingRs30000/*from above amount as retention amount plus deducting Rs13500/*as income tax plus Rs.24000/*as WCT sales tax in Haryana state i.e net bill amounts to Rs.532500/* and recieved a cheque amounting to Rs.532500/*Whether service tax to be deposited on Rs600000/* or Rs532500/*.
