Vat on service tax?? is it legal?

This query is : Resolved

Vaibhav Garg (Querist)
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02 June 2016 Hi,

Can you please tell me a case where VAT on service tax is been charged.

I have been charged the VAT on Service Tax by Zomato on an order made by me. I even don't know at what rate.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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02 June 2016 VAT is a State Subject and the computation varies from state to state. However, a common thread in almost all states is the definiton of "Taxable Turnover" which includes all items in a tax invoice - Service Tax being an item in the tax invoice is also covered by the definition and as such is subject to VAT. Agreed this concept is absurd since Service Tax is not a part of turnover - but then LAW IS AN ASS.

Ganeshbabu K

Ganeshbabu K (Expert)
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02 June 2016 This is because,.

VAT on sale of food and service tax on delivery of food

But note that where no delivery fee/charges by online portal then no service tax applicable on transaction,

So suggested if they increase price of product so that VAT only applicable reducing hardship on online portal admin work, and also protecting customers interest..
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However there are still some cases where vat and servicetax levied on some transaction, one such is sale of software where vat and service tax charged and it is legal to do so for bad sake.