service tax for manpower supply

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2011 If a company engages manpower from a manpower consultancy. The consultancy raises the bill for the month. Now my question is
1.at what rate the company has to charge the service tax on the bill and rate of cess.
2. Do we need to deduct TDS on the above transaction or not.

Please clarify them.

thanx in advance

annapurna

annapurna (Expert)
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03 June 2011 the service tax rate is 10% and Basic education cess is 2% and Secondary and higher education cess is 1%. So effectively the rate of service tax is 10.3%,

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