calculation of service tax

This query is : Resolved

gaurav (Querist)
Follow

14 August 2007 sir,
i am an commission agent and i as per my agreement get the commsion including serice tax the principal does not pay us any think other than commmision inname of sevice tax so can i calulate the basic amount fot the service tax after diducting the serive tax amount from it

gaurav

gaurav (Querist)
Follow

14 August 2007 for example I receive commisionrs.100[including serive tax as per agreement] than do i have to pay serive tax on rs.100 or after deducting the serive tax part from it.

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
Follow

15 August 2007 Dear Sir

There is very clear provision by the Finance Act 1994. Cum tax working is very much permitted vide Explanation 2 to Sec 67. Thus if you receive grossly Rs 100 (without any separate service tax charge thereon)your service tax shall be -

Service Charge - Rs 89
Service Tax @12.36%- Rs 11

Upgrade to CAclubindia Pro. Subscribe Now!