A resident welfare association received ₹ 12,40,000 towards electricity and water bill to be paid for the consumption of its members. It is not a small service provider. Assuming the service tax rate as 14.5%, how much h

CS Executive · Tax Laws and Practice · PYQS · June 2017
A resident welfare association received ₹ 12,40,000 towards electricity and water bill to be paid for the consumption of its members. It is not a small service provider. Assuming the service tax rate as 14.5%, how much has to be paid towards service tax ?
(A) ₹ 1,55,000
(B) ₹ 34,800
(C) Nil since it is pure agent
(D) ₹ 49,300

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Service Tax

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic