Applicability of Service Tax

Dear Sir,
We have appointed a consultant for a period of 24 months for Job specific consultancy & advisory services.
The consultancy service charges is being made monthly.
Now whether this consultancy charges payable to the Consultants attracts Service Tax also apart from TDS ?
If yes what percentage.
E.g. If we are making a payment of Rs: 10,00,000/- PM towards consultancy services how much Service tax and TDS do we have to deduct from their Bill ?? Or what percentage the consultant can add to their bill towards Service Tax ?

Please advice.
Asked 1 year ago in Service Tax from Shillong, Meghalaya
Dear Sir,

With respect to your quarry please find below answer :

Service Tax shall be applicable to service provider and not to the service recipient except when you are a company and service provider is individual.

Hence in your case consultant will charge the service tax @ 14.5% if it is applicable on them.

In your example you only have to deduct TDS @ 10% on Rs. 1,00,000/- . No Service Tax if it is not a service by advocate. Consultant will add 14.5% after 15.11.2015 on the value of service.  ( No abatement applied on the said category)

For further details please free to contact me.

Thanks & Regards
CA Vishrut Shah
(+91-98214798534)
vishrut1303@gmail.com
Vishrut Rajesh Shah
CA, Ahmedabad
229 Answers
4.9 on 5.0
  Talk to Vishrut Rajesh Shah
Dear Sir,

As explained by you, it doesnt appear that your transaction is covered under Reverse Charge Mechanism and hence it is not your responsibility to deduct/ charge Service Tax. Your consultant may charge you Service tax @ 14% plus SBC @ 0.5% in his Bill.

You are required to deduct TDS @ 10% on his Consultancy Bill and pay it to the Government before the 7th of every month.

Regards,
CA Rohit R Sharma
Mumbai.
Rohit R Sharma
CA, Mumbai
719 Answers
5.0 on 5.0
  Talk to Rohit R Sharma

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Abhishek Dugar
CA, Mumbai
761 Answers
5.0 on 5.0
Rohit R Sharma
CA, Mumbai
719 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
210 Answers
5.0 on 5.0
Shiv Kumar Agarwal
CA, Delhi
195 Answers
5.0 on 5.0
Lalit Bansal
CA, New Delhi
72 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
229 Answers
4.9 on 5.0
Ria Nagpal
CA, Ahmedabad
28 Answers
5.0 on 5.0
Anuj Agarwal
CA, Aligarh
34 Answers
4.6 on 5.0
B S Sridhar
CA, Chennai
35 Answers
5.0 on 5.0
Rajeev P T
CA, Chennai
34 Answers
5.0 on 5.0