Service Tax applicability on stamp duty and transaction tax

[Asked by Guest]

is service tax to be deducted on stamp duty and transaction tax which is shown separatly in the invoice of brokerage charged.

[Madhukar N Hiregange]

The amount liable for service tax is the gross amount charged for the transaction from the servcie receiver.

AI Summary

Service tax liability applies to gross transaction amount charged, encompassing separately shown stamp and transaction taxes.
The operative rule: service tax is leviable on the gross amount charged for the transaction from the service receiver; charges billed as part of the consideration are included in the taxable base even if shown separately as stamp duty or transaction tax on the invoice.