dear whatever payment you are making to the contractor service tax has to be paid . once you are making payment of bonus to contractor than you have to pay service tax. tks j s malik 1st November 2008 From India, Delhi
If the bonus is paid to the contractor and the contractor does not charge any service charge, inturn takes it as an reimbursement only. Then is it required to include service tax? The contractor acts as a true agent and therefore service tax may not be applicable. Please advice.
shany 25th October 2013 From India, Bangalore
If the contractor has not given a separate invoice with service tax, then it implies that he will actually get 89 rs and balance 11 rs, approx is the service tax component for every 100/- that you pay out.
Tds will be separate 25th October 2013 From India, Bangalore
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