the assesse is in construction business and is receiving money after deduction of interest on mobilisation advance, other recoveries and tds , what should be the value liable for service tax??
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 26 August 2010
| Originally posted by : manik | ||
 |
Recoveries need not be added up but TDS accrue to the contractor which requires tobe added up. |
 |
manik
(ca in practice)
(420 Points)
Replied 26 August 2010
Govind Rathore
(CA Final)
(543 Points)
Replied 26 August 2010
Service tax should be deducted on the gross amount that is (ur gross billing amount to the client )
Ex. bill gross amount 100000
Recoveries deducted 5000
TDS deducted 10000
Payment received Rs.85000.
Service tax to be deducted on Rs. 100000.
i.e service tax should be deducted on income to be received....
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
