06 January 2016
A Co. X which provides advertising services to its customer and charges lets say 100 and for providing that services it also takes services from publish co Y for which they charge as follow Purchase 100 discount 15 Net amt paid 85 to Y Now what Co X is doing that it is charging service tax on 15 i.e rate calculation that we are doing is 14.5-85%=2.175% and making entry in tally as follows: Z(customer) 100 To Sales 97.825 To Service tax@2.175% 2.175 My Query is that whether we are doing correct or not and how to show the same in Service tax return ?
06 January 2016
No it is totally wrong after the amendment in finance act 2015 all reimbursement expenses are taxable it will be better to receive bill from co y on customer name thereby charging amount from customer as pure agent so the bill will be raised for two amount one as pure agent and second one for amount xo x charged extra
CAclubindia
