Service Tax

Dattatray (Account Executive) (51 Points)

14 January 2011  

Hiii...

I have a question...

Suppose XYZ Ltd is providing knowledge based services to A, B, C, D, E, & F companies, and all these companies are group companies. Now at the time of billing XYZ is using Cost + Margin Method. I mean if my cost is Rs.100/- then we are charging Rs.10/- as Service charges.

So my question is shall i charge Service tax on.....

Rs.10/- ...... or

Rs. 100/-... or

Rs.110/- (Cost + Service charge)

Waiting for your reply. It would b great if u could give us some examples.

 

Have a nice day !