My Company is registered under service tax under manpower supply and recruitment. My company hires persons on a contract basis and deputes them to different companies. Here we are only taking care of supply of persons and not the work.
The invoice raised by my company is
1. Persons Salary 50,000.00 2. Service Charges(10%) 5,000.00 3. S.Tax@12.36% on (2) 618.00
Is the above calculation of ST is correct?
As per our company's management, they say that the person salary they are collecting is a reimbursement which they pay to the person. So the service tax will be charged only on service charge and not on persons salary as it is a reimbursement. Please clarify?
Guest
Guest
(Expert)
31 December 2013
No you are wrong..Even the same business is done by me..but the service tax amount is collected on gross amount...(1+2)in your case.
CAclubindia
