our company is hiring car on rent in which service provider charge 4.99% service tax so in this case how much service tax should i charge. if i charge again 4.99% so remaining service tax who will be paying or i booked remaining all service tax amount.
19 May 2013
after abatement he should charge.. 4.944% of the service value.
now if the provider is individual, partnership firm, llp, AOP. and if the receiver is body corporate.
then in that case receiver will pay 40% of TAX AMOUNT i.e, 1.9776% of the value.. and the provider is will pay 60% of the TAX AMOUNT i.e, 2.9664% of value..
Bill Amt Rs. 1000/- Misc Exp Rs. 450/- Total Amt 1450/-
In this case service provider charges service tax on bill amt i.e. 1000/- (1000*12.36% of 60% =49.44/-). So total bill would be Rs,1499.44/-.
My query is if he is charging service tax on bill amt so why we calculate service tax on 1499.44/- amt is it right calculation or we have to calculate on bill amt. Plz suggest
CAclubindia
