Ser. tax on Security agency

This query is : Resolved

rajesh arya (Querist)
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29 August 2009 Sir,

I want 2 know that if one co. 'x' supply manpower to co. 'y'. then on which amt. they should charge ser. tax?

for Exp. - Co. x Supplies 10 security guards @ 4000/-p.m.
Total amt.- 40,000/-p.m.
ser. chgs. @ Rs.1/- per gauard
total amt.- Rs.10/-p.m.
Gross amt.- 40,010/-p.m.

So, i want to know that, whether the ser. tax charged on Rs.40,010/- or Rs.10/-
also provide me the reason behind?...

thanks in advance

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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29 August 2009 It's Professional Service and Service Tax Charged on 40010 Amt.

rajesh arya

rajesh arya (Querist)
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01 September 2009 As someone CA said me the s.tax will be charged on 10/-Rs.

His Point is that we should pay s.tax on the service chgs. amt. rather than gross amt. bcoz he is just reimbursing the salary part o guards.

thanks
rajesh arya

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