11 March 2009
A Service provider in the nature of outsourcing employees (in its rolls) to its client(employees working at client place), raises invoice for salary of its employees working in its client place (salaries paid by service provider & reimbursed by client). Can they charge service tax on the salaries(includes pf& esi) or just on the service charge they levy? Both are charged in the same invoice.
11 March 2009
NORMALLY SERVICE TAX WILL BE LEVIED ON THE INVOICE AMOUNT. IF THE SERVICE PROVIDER PREPARE SINGLE BILL INCLUSIVE OF ITS SERVICE CHARGES, THAN SERVICE TAX SHALL BE CHARGED ON TOTAL INVOICE AMOUNT.