22 November 2012
One of our service providers (Providing Photo copy machine including maintenance of machines and Tonner). Bill they are showing materials labour and overhead charges. Materials portion they are charging VAT and on Labour and Overheard portion Service Tax. As per recent changes we have (receiver) to bear 50% butThey are charging 100% Service Tax on that i.e. labour and Overhead.
22 November 2012
They have to charge 50% percent only. If they are charging you the full amount, you should pay them half only. And pay the balance half amount to the Service Tax Department directly.
CAclubindia
