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service tax calculation


Kalpana Ramesh

2016-02-15

dear Sir,

 

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?

 

 

 

Rahul Rai

2016-02-16

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.

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