HOW TO CALCULATE SERVICE TAX

This query is : Resolved

Mr. Priyanka Jena (Querist)
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12 December 2008 HOW TO COMPUTE SERVICE TAX IN WORKS CONTRACTS WHERE THE CONTRACTORS CHARGING VA in composite scheme.

Is the below process is ok?

Say Groos amount 100

Vat 4% 4

Total 104

service tax
33% on 12.36% on 100=4.07

Net amount 112.07

Himanshu Tandon

Himanshu Tandon (Expert)
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12 December 2008 Say Gross amount 100

Vat 4% 4

Total 104

service tax
33% on 12.36% on 100=4.07

Net amount 112.07

yes it is fine but if we calculate it under work contract service then

Say Gross amount 100

Vat 4% 4

Total 104
Less VAT as per rule tax is to be calculated on 100

service tax
100 @ 4.12% =4.12
Less Input Service Tax Credit 1

Balance tax liabilty to be paid 3.1