how to calculate the (outsourcing active ) services Tax


Posted 3 years, 5 months ago by raghu gorantlla

The question is not very clear, however i will answer it with an example. Service tax has to be calclulated on value of the service ie., say the value of the service provided (Bill to the customer) is Rs.1,00,000/- then service tax shall be calculated as under:

Service tax @12%                                                   Rs.12,000/-

Education cess@2%                                                          240/-

Sec & higher education cess@1%                                     120/-

Total service tax                                                            12,360/-

Total bill to customer                                                     112360/-

Posted 3 years, 5 months ago by Mukesh Jain CA

Question is not clear. But i make assumption that you are asking, How to Calculate Service Tax on value of Service Provided as Outsourcing Partner.

Service Tax is applicable and have to be paid on entire value of service provided.

If the services provided are to any external country and money is received in Foreign Currency, then the Service Tax will not be applicable.

If you can provide more details of the service provided, a solution to the point can be addressed here.

Posted 3 years, 5 months ago by CA Pulkit Sharma

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