NIVASA (Service) (29 Points)
28 September 2011We are a company operating in Karnataka.We are paying service tax to our canteen contractor.(after 50% abatement)Now, he is claiming Karnataka VAT of 5% (Under composition scheme as selected by canteen contractor) on the entire value of the bill.
My question is on 50% we have paid service tax.On the remaining 50% we will pay VAT @ 5%.
Is it correct ?
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 28 September 2011
No... You have to pay VAT on the total turnover..
puneet khurana
(finance)
(75 Points)
Replied 28 September 2011
Vat will be paid on the eitire amount. Though service tax will be paid on the 50 % on Service Component.
Raja
(Jr Accounts)
(21 Points)
Replied 22 March 2012
How to calculate service tax and vat on out door catering with Example?
CAclubindia
