service value

This query is : Resolved

rachit (Querist)
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03 November 2009 A service provider sends a total bill of Rs. 100,000.00 for professional services rendered by him. the break up of the bill is as follows:

audit work: Rs 90,000.00
conveyance exp : Rs. 10,000.00

Please tell me, whether service tax is payable on entire Rs. 1 lacs or only on Rs. 90,000.00

CA Balram Sharma

CA Balram Sharma (Expert)
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03 November 2009 Service tax will be levied on gross amount charged,
hence out of pocket expenses also covered like conveyance.

so ST will be payable on entire amount one lac.

rachit

rachit (Querist)
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03 November 2009 Another question:

A payment of Rs 5000 is made to a CA firm in relation to obtaining a stay order on some trade tax issue... Is this service taxable?

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