harsh (partner) (24 Points)
05 May 2012Dear Sir,
Our partnership firm is in space selling for magazines, we are now going to cross 9,00,000 turnover so we have applied for service tax registration. Our Margin in space selling varies from 5% to 20% so we should charge 12.36% service tax on varing amount each time. kindly advice.
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 05 May 2012
The Service tax should be charged at the rate of 12.36% on the amount charged for service provided. e Whether you charge variable rate of profi magin is not relevant for the purpose of charging service tax.
So, when you charge any amount in your invoice, just add service tax @ 12.36%.
Regards
Prateek
Rajinder Batra
(Proprietor)
(22 Points)
Replied 06 May 2012
Applicability of Service Tax
Applicability of Service Tax in case of Indian Resident (individual) providing services to a 3rd Country’s manufacturing Company for sale (business promotion) of their Machines to Buyers in India. Commission / Fee received from is in Foreign Exchange of Euros 19,200 (about 13 lacs INR) received on April 20 2012. Agreement signed way back was appointment as Distributor in India with remuneration as commission. I am not yet registered for Service Tax. If applicable then when am I suppose to deposit the same after completeing ST formalities.
Prasad
(Sr. Manager)
(617 Points)
Replied 09 May 2012
The amount received on 20th April, should have been deposited by 5/6th May 2012.
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