service tax calculation
Kindly let me know how to calculate service tax for the business auxilary account
for example for the following income receivced for the service rendered in USD
basic rate 1500
service tax 14.5% = 217.50
Total usd will be 1717.50
and if i receive payment @ USD conversion rate of 65/-
1500*65 = 97500
ST 14% 13650
sb 0.50% cess on (97500) 487.50
is it correct way of calculation? if so my income will be only 97500 for that i have to pay TDs of 10% is it?
It is not clear whether you exported the service or only billed in USD. I will consider that you provided services to a client located out of India.
In this case, it is export of services. Service Tax is exempted on exported services if you receive payments within 6 months of providing service.
In your case if you have received payments within 6 months of providing services, service tax is exemted and no need to pay service tax on income received.