Base Amount of Service Tax

service tax chargeable amount may be 22500/- because the commission amount will be booked separately in profit and loss account.

Please specify the exact nature of service rendered by your client.  As per the provisons prevailing today, service tax is leviable on the value received from the client.  In this case the value received from your client is Rs.22500/- and not Rs.22000/-.  The amount of Rs.500/- being the commision paid  to your agent is your operational expense which will not be excluded from the Taxable Value. Hence, Service Tax  is to be paid on Rs.22,500/-,

Hello sara! 

In terms of section 67 of Finance Act, 1994,  which deals with the provisions of service tax,  value is primarily defined as :-