24 November 2014
Whether vat is to be collected on base value or value including service tax will vary based on each State’s VAT laws and Case Laws. In the state of Kerala, department has clarified that Service Tax paid would form part of the sale price and consequently would form part of the turnover of the dealer, and chargeable to Kerala Value Added Tax. (ORDER No.C3/4174/10/CT DATED 31/3/2010) Link-http://www.keralataxes.gov.in/clarification/4174.KVAT.10.pdf
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