I am running a man power agency having registration under service tax act. In which I am spending some amount to each employee for his food, uniform, petrol etc but these amounts are not collected from my clients separately .Can I deduct this expenditure from the service charges received and shown in the service tax return? Can I pay the service tax foe net amount only?
2 Answers from Attorneys
No. You can not deduct that amount from service charges.
Jeevesh Mehta , Customs Excise and Service Tax Advisory.
These can be deducted from your Income Tax and not from Service Tax, as these are business related expenditure.
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