Service tax

This query is : Resolved

Manik Anand (Querist)
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23 October 2009 Kindly clear the following...

Basic salary . 35000
EPF . 4000
ESI . 2000

Sub Total . 41000.00

Service Charges @ 10% 4100.00

Sub Total . 45100.00

Service Tax (45100 @ 10.30%) 4645

Payable amount by us: 49745.00

Kindly clear whether ESI & PF (notional figures taken) are liable to service tax as calculated above..

This case is of contractor (labor service provider)to a Ltd Company.

Manik (maanik.anand@gmail.com

Sanjeev Kumar

Sanjeev Kumar (Expert)
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24 October 2009 YES

Manik Anand

Manik Anand (Querist)
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24 October 2009 Can you please tell me the actual reason of including so...

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Amit Sheode

Amit Sheode (Expert)
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24 October 2009 Dear Anand,
The simple reason is that the contract between the labour contractor & the principal employer is of total value & the total value has to be reckoned for valuation