salamat (director) (36 Points)
07 August 2015Dear All,
i have a query regading the application of service tax.please guide and advice
A is Owner of Mall, leased ou parking lot to B for monthly rent /consideration/fees of Amount Rs X.
B being a contractor /collectng agent who retains the revenue collected and pay monthly rent of amount X
total amount collected is Y
Rent paid to A is X plus service tax
Expenses(salaries and others) is Z
now my question is how much service tax is B liable to pay to govt
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5146 Points)
Replied 09 August 2015
Example:-
The invoice raised to a client is as follows:
Monthly rent : INR 2,40,000/-
Service Tax @ 10.3% INR 24,720/-
_______________________________________
Total amount: INR 2,64,720/-
TDS deducted at the rate of 10% on the total invoice amount i.e
INR 26,472/-. This is practiced by most companies availing the services. As per this invoice amount you need to pay the service tax mentioned above.
CAclubindia
