Applicabilioty of VAT and ST on the xerox contract.

This query is : Resolved

Mahendra Vyas (Querist)
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31 August 2010 Dear friends,
We have a xerox contract, for which the contractor is charging,both VAT and ST on the full bill amount. For example
Bill amount = 10000
Add VAT @ 8%= 800
ST @ 10.3% = 1030
(10.3% on 10000)
Total bill amounted to Rs. 11830.

Whether contractor is charging correct to us. I think there should be a bifurcation, for charging VAT and ST. Please help me in this matter.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 August 2010 If Xerox contract involves include paper, toner,labour charges together then both VAT and service tax is applicable, but charging both on same value, need to be check with the contractor under which service category register and what scheme is opted, whether, regualr, composit, abatement scheme.so more info required

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