how the service tax is charged pl expl. on total bill or on the commission received by the agency ?



an agency is providing manpower to us and we are making payment of their wages and commission to the agency. the agency is charging service tax on total bill amount i.e. the wages and the commission. is it correct ?, pl explain the law

how the service tax is charged pl expl. on total bill or on the commission received by the agency ?
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One Reply to “how the service tax is charged pl expl. on total bill or on the commission received by the agency ?”

  1. It is absolutely fine. The law states that, if anyone collects any amount of money in the name of Service Tax, he/she is bound to pay it to the government. The agency HAS to charge u extra as Service Tax, or else they have to reduce the value of the service rendered and then pay the tax. This should not be feesible for a sensible businessman.
    What is Service Tax?
    It is the tax on the services rendered. It is a tax paid by u. But only collected and deposited by the agency. If the agency does not charge extra as Service Tax, it seems, that they are paying for it. Which is not supposed to be. So u see, AAL IZZ WELL!!





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