Service Tax calculation
This query is : Resolved
21 May 2011
Hi,
Suppose i provide a service for Rs 10,000.
Then Service tax = 10000*10.3%=1030
So the total billed amount to be paid by the client should be Rs 10,000+ 1030= 11,030
But what if the client pays only 10,000. And not the tax amount. What should be the Service tax amount now. And how it is calculated.
Suppose i provide a service for Rs 10,000.
Then Service tax = 10000*10.3%=1030
So the total billed amount to be paid by the client should be Rs 10,000+ 1030= 11,030
But what if the client pays only 10,000. And not the tax amount. What should be the Service tax amount now. And how it is calculated.
21 May 2011
value of service = 10,000 X 100 /110.30 = 9,066/-
service tax 9,066/- X10.30 % = 934/-
service tax 9,066/- X10.30 % = 934/-
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21 May 2011
Thanks for the swift reply sir.
What will be the tax if amount billed is Rs60,000. (And the client don't pay the tax i.e Gross amount is 60,000)
This maths is just not getting into my mind. :(
What will be the tax if amount billed is Rs60,000. (And the client don't pay the tax i.e Gross amount is 60,000)
This maths is just not getting into my mind. :(
21 May 2011
Amount 60,000 will be treated as inclusive of Tax and the calculation will be back such as
110.30=100 then 60,000=? 110.30 is inclusive of tax. if you want amount of tax then 10.30=100 and 60,000 = ?
do the some u can find the answer.
110.30=100 then 60,000=? 110.30 is inclusive of tax. if you want amount of tax then 10.30=100 and 60,000 = ?
do the some u can find the answer.
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21 May 2011
Just check my calculation, and let me know if i am correct.
For service amount Rs 60,000/-
If client pays the tax then,
Service value = 60,000 + 60,000 x 10.3 %=Rs 66180/-
And service tax amount = Rs 6180.
And Now for , if client doesn't pay the tax then,
Service Value= 60,000 x 100/110.3= Rs 54397/-
Service tax= 54397 x 10.3 % = 5603/-
For service amount Rs 60,000/-
If client pays the tax then,
Service value = 60,000 + 60,000 x 10.3 %=Rs 66180/-
And service tax amount = Rs 6180.
And Now for , if client doesn't pay the tax then,
Service Value= 60,000 x 100/110.3= Rs 54397/-
Service tax= 54397 x 10.3 % = 5603/-
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21 May 2011
Your above calculation is correct.
Message likes :
2 times
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