TaxTMI 
TaxTMI 
TaxTMI 
CHARGING OF SERVICE TAX
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....HARGING OF SERVICE TAX<br> Query (Issue) Started By: - PANKAJ A Dated:- 11-12-2015 Last Reply Date:- 11-12-2015 Service Tax<br>Got 7 Replies<br>Service Tax<br>Dear Madam, We are a Proprietorship Firm, we are into Manpower Supply. We Hire Employees on our Payroll and Supply to our Clients who are PVT LTD Companies. While Billing to Them we charge them as per the details below: 1) Total Actual G....
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....ross Monthly Salary (Incl ESIC/PF/PT) 1000.00/- 2) Professional Fees (10% of (1)) 100.00/- 3) Service Tax (on Professional Fees Only). (14.5%) 14.50/- Total Invoice Value 1114.50/- We are paying the Service Tax Received by us on a regular basis from 1st April 2015. Please let me know if this billing is right or not. As somebody told us that we should charge service tax on (1) ₹ 1100/- -and....
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.... not only on (2)Rs. 100/-. Our ST Consultant had asked us to charge on (2) only. Awaiting a positive reply from your end. Regards, Pankaj A [email protected] Reply By KASTURI SETHI: The Reply: Taxable Value in this case is ₹ 1100/- and Not ₹ 100/- See definition of 'Consideration' in Explanation (a) to Section 67 of the Finance Act.This is effective from 14.5.2015....
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.... Reply By venkat eswaran: The Reply: Now Manpower supply service tax 100% payable by Service receiver only not by service provider Reply By KASTURI SETHI: The Reply: It is correct in Manpower receiver has to pay 100%. Reply By Ganeshan Kalyani: The Reply: Yes in case of manpower supply and the condition that provider should be individual/firm ane recipient should be a body corporate/company ....
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....is fulfilled then the responsibility of payment of service tax shifts on recipient of the service as per notification 30/2012 as amended. Reply By Ganeshan Kalyani: The Reply: Also I agree with the reply of Kasturi Sir, the reimbursement portion also become taxable with effect from 14.05.2015. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, After going through your views in my confi....
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....rmation, I am of the view that valuation method in respect of Manpower Supply remains the same though 100% Service Tax liability has been shifted to Service Recipient under Reverse Charge mechanism. This is also a reply to the query/doubt raised by Sh.. Venkat Eswaran in his comments dated 11.12.2015. Reply By Ganeshan Kalyani: The Reply: Yes sir i agree with you.<br> Discussion Forum - Knowledg....
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