Is vat leviable on'erection supervision,install.maint,repars

This query is : Resolved

Guest

Guest (Querist)

21 August 2011 WE are machinery manufacturers. We are billing machinery and paying VAT/CST on machinery billing. We are also doing the service under 'Erection,Supervision/Installation, Maintenance or repair services' of the above machinery. For this service we are registered under 'Central Excise Department (Service Tax) under Service provider of 'C&I, Maintence or Repair service'.

We are billing separately and collecting tax and paying to service tax dept.

Can VAT is chargeable on 'Erection Supervision, Maintenance,repair service' apart from 'Service Tax'

We are under 'Andhra Pradesh Value Added Tax'

The AP commercial taxes are proposing the tax on 'Erection Supervision, Maint.Repair Service.

Can any body advise/help me is this correct. Can we pay the VAT on Service Bills.

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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21 August 2011 Dear Anonymous

As far as my knowledge, if you are issuing separate bills for erection and commission & there is no supply of goods/ material then there will not be any VAT on service bills.

If any material is provided from your side in that erection and commission then VAT is attracted on that supply.

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