Applicability of service tax

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sachin (Querist)

06 March 2008 one of my client xyz design(i) pvt ltd. deals in the interior design. They works as mgf. furniture such as workstation, table, chair & all these etc., They uses wood to mfg. this & also uses the labour. They raise invoice agst parties including vat 8%.(and they mentioned invoice as eg. providing & fixing tabel or workstation at client place) As the party is applicable for service tax ? Their turnover is above 40 lacs. can they should be raise their invoice including service tax as 12.3%? pls guide

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

06 March 2008 When it is a sale of goods, where does the question of service tax arise? They manufacture furniture and sell them is it not?

sachin

sachin (Querist)

07 March 2008 one of my client xyz design(i) pvt ltd. deals in the interior design. They works as mgf. furniture such as workstation, table, chair & all these etc., They uses wood to mfg. this & also uses the labour. They raise invoice agst parties including vat 8%.(and they mentioned invoice as eg. providing & fixing tabel or workstation at client place) As the party is applicable for service tax ? Their turnover is above 40 lacs. can they should be raise their invoice including service tax as 12.3%? pls guide

R.V.RAO

R.V.RAO (Expert)

07 March 2008 TURNOVER OF RS. 40 LAKHS ATTRACTS SEC 44 AB- TAX AUDIT. IT HAS NO IMPLICATION FOR SERV. TAX.
THE FACT THAT ONE CHARGES VAT SHOWS IT IS A CASE OF SALE .
SERV. TAX DOES NOT ATTRACT WHERE A SALE INVOICE IS MADE AND VAT IS CHARGED.
R.V.RAO

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