TaxTMI 
TaxTMI 
TaxTMI 
Amount of Liability of Service tax
puneet virmani
'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/*.
Service Tax Must Be Calculated on Gross Amount, Not Net Amount After Deductions, Clarifies Query Response A sanitary contractor, referred to as 'B', issued a bill totaling Rs. 600,000 for services rendered. After deductions for retention (Rs. 30,000), income tax (Rs. 13,500), and WCT sales tax in Haryana (Rs. 24,000), the net bill amounted to Rs. 532,500, which was paid by cheque. The query raised was whether the service tax should be deposited on the gross amount of Rs. 600,000 or the net amount of Rs. 532,500. The response provided clarified that the service tax should be deposited on the gross amount of Rs. 600,000. (AI Summary)