Can be Levaiable on Service Tax Element of Sale Price

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Kumar Ankit (Querist)

16 February 2010 Can VAT be levied on service tax charged in sale price on purchase of goods, i.e. can service tax charged in the sale price be part of the sale price for the purpose of levy of VAT.

If yes, then please illustrate it with case laws/regulations. examples

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)

16 February 2010 yes

Kumar Ankit

Kumar Ankit (Querist)

16 February 2010 Sir,
Can you please give me an example, or some authentic citation or a order in which the same has been upheld.
Also, kindly tell me, whether its applicable on all kinds of sales.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)

17 February 2010 software and works contract transactions are the examples. Service tax is a central tax and excise in nature. Vat is a state tax and sales tax in nature. in almost all the manufactured products carry excise and vat both.

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