RATE OF SERVICE TAX

This query is : Resolved

muttunagouda (Querist)
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07 October 2007 DEAR SIR/MADUM
I AM MUTTU FROM BANGLORE
I AUDITING THE AN GOVT ORGANISATION
IN MARCH 2006 AN ADEVETISEMENT COMPANY HAS CHARGED THE SERVICE TAX @1.83%AND1.54%AS SERVICE TAX MENTIONING (AS GOVT ACT)BUT THEY HAVE NOT MENTIONED THE NOTIFICATION NO
SO MY DOUGHTIS SERVICE TAX IN 2005-06 WAS ONLY 10.24% SO TELL ME
WHY THEY HAVE CHARGED 1.53%AS SERVICE TAX INSTEAD 10.24%?

REGARDS
MUTTU
STUDENT

R.V.RAO

R.V.RAO (Expert)
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08 October 2007 THERE ARE THE FOLLOWING TWO KINDS OF TAXA BLE SERVICES FOR WHICH THERE ARE EXCLUSIONS FROM TAXABILITY AS GIVEN BELOW.
UNLESS THE ADV. COMPANY FALLS UNDER PURVIEW OF THESE EXCLUSIONS, THEY SHALL NOT BE ABLE TO CHARGE LESSER OR NO SERVICE TAX AS WAS DONE.

CATEGORY EXCLUSION FROM SERV.TAX

1.ADVT.AGENCY :GOVT. AGENCY OR DEPT.DAVP
2.SALE OF ADVT.SPACE : SALE OF SPACE IN PRINT MEDIA,BROAD CASTING SERV.ETC...
ALSO PL. NOTE THAT THE CENTRAL GOVT.MAY BY NOTIFICATION IN OFFICIAL GAGETTE EXEMPT GENERALLY OR SUBJECT TO SOME CONDITIONS, THE WHOLE OR ANY PART OF SERV. TAX (SEC.93)
R.V.RAO