TaxTMI 
TaxTMI 
Service tax to be charged on which amount
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....ervice tax to be charged on which amount<br> Query (Issue) Started By: - Vijay Chitte Dated:- 5-5-2006 Last Reply Date:- 6-6-2006 Service Tax<br>Got 2 Replies<br>Service Tax<br>One of our IT company supplies of Manpower (IT related employee) to another company. We enter in to agreement and agreed that our employee seat and works at your premises, company will reimburse the employee salary which wi....
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....ll actual basis and service tax charge on basis of actual service incurred by the another company. The query is service tax charge on reimbursement of employee salary + actual service incurred by another company? Or only on service incurred by another co.? Further explained by way of an illustration given below: ( X, IT company provide the employees to Y company for IT related work like maintains ....
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....of software, modification, maintain data & back up etc. at premises of Y co. X co. is reimburse the employee salary is (whish is actual basis) Rs.1500000/- from Y company and Y company is incurred actual service is Rs.100000/-. My query is Service Tax chargeable on which amount? Is it Rs.1500000+100000=1600000/- or on only Rs.100000/-? Can any one guide me? Vijay Chitte Reply By Surender Gupta: T....
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....he Reply: Service tax shall be paid on the gross amount i.e. on Rs. 16,00,000/-. Reply By Madhukar N Hiregange: The Reply: The service provided by you is only manpower supply as there is no job responsibility on you. The people would be allotted work based on the instrcution of client and would be supervised and controlled by them. You are only there to pay the salaries and take care of statutory ....
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....dues. Value of taxable servcies would be 16 lakhs.<br> Discussion Forum - Knowledge Sharing ....