Service Tax on Secondary services

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  1. zakir ali

    zakir ali New Member

    Consider I am charging rs 5,00,000 for software development for my client. and i am getting it developed from a third party who is charging me rs 4,00,000.

    will service tax be applicable on 5,00,000 which i can charging to client or on 1,00,000 which is my income.

    Can can the third party charge me service tax on 4,00,000?

    please guide me

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