Service TAX to Engineer/Contractor

[kraghum]

Dear all

My contractor spoke to me that he need to show some turnover for TAX purpose and that will cost him some service tax, and it will 14% which i need to bear. he has not yet told the amount but he did said he will tell the minimum that need to be Paid

Please advice me on this.

Raghu

[tvsh]

The engineer should include his expenses ( petrol expenses, phone expenses, sales tax on the materials he buys, service tax, income tax he has to pay due to your business, etc.) in the rates he quotes. If there is no clarity on how much the tax would be upfront, you will be taken for a ride.