20 June 2017
Sir/ Madam I am working in a NGO. We got fund from a Company to implement / construct a masonry Dam under CSR activity. The details of fund received are as under-
1) purchase of cement, sand, labour etc for construction of Dam Rs. 28,00,000.00 2) Our NGO administrate/ service charge for this work Rs. 2,00.00.00
The total project cost is Rs. 30,00,000.00
Kindly suggest should we charge service tax @ 15% on Rs. 2,00,000.00 i.e. on our administrative exp. or on total project cost i.e. on Rs. 30,00,000.00
20 June 2017
Thanks sir, Can you please provide the reference for my office record. Secondly we have to purchase cement and will pay VAT on it. Again we will charge service tax @15% is it justifying paying service tax on VAT
CAclubindia
