calculation

[Ankit Sachdeva]

how to calculate net service tax ? what are the basics of calculation?

AI Summary

Understanding Net Service Tax Calculation: Refer to Section 67 of the Finance Act, 1994 for Guidance. A query was raised about calculating net service tax, asking for the basics of the calculation. The response advised referring to section 67 of the Service Tax under the Finance Act, 1994. It explained that the amount received is treated as the gross value, and using a reverse method, one can calculate the net service tax. Additionally, if a contract is not inclusive of service tax, it should be charged over the service value. The gross amount received can then be used to apply the reverse formula to achieve the same result.