I am working in a manpower supply company that raises invoices for the actual salary of employees working with clients. For example, if I am providing 10 employees, each employee's salary is Rs. 12,000/- per month. The invoice raised would be:
10 employees × Rs. 12,000 = Rs. 1,20,000/-
Plus service charges at 6% = Rs. 7,200/-
The total invoice amount is Rs. 1,27,200/-.
I have a query regarding the calculation of service tax. Should I calculate the service tax on the total invoice amount of Rs. 1,27,200/- or only on the service charges of Rs. 7,200/-?