State with reason in brief whether the following statement is true - TopicsExpress

State with reason in brief whether the following statement is true or false with reference to the provisions of service tax: Mr. Salim, an architect has received the fees of ` 4,48,500 after the deduction of income-tax of ` 51,500. Service tax will be payable on ` 4,48,500. Ans - False: As the charge of the service tax is on the services provided, the gross receipts are to be considered for tax calculation. Hence, service tax will be payable on the gross fee of ` 5 lakh.

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