New flats - service tax - is vat a component of st
This query is : Resolved
Rajasekar Venkatesan
(Querist)
23 November 2016
I find from the official site of CBDT that VAT & UDS are not a component of Service tax while computing service tax on the new constructions.
But, some builders are including VAT for the purpose of service tax.
Link - https://www.cbec.gov.in/resources//htdocs-servicetax/faq-29sept11.pdf
Relevant Portion of FAQ
A-10. Is the value added tax imposed by States required to be included for the purpose of service tax?
For the purpose of service tax, State Value Added Tax (VAT) has to be excluded from the taxable value.
I am not able to get any reply from the CBDT office at Anna Nagar Chennai on this clarification, as the builder might not accept anything other than a letter from the tax authorities.
I need your help on two things
a) whether my understanding on the non-inclusion of VAT for ST is correct?
b) How to enforce this with the builder not to charge ST on VAT
Thanks for your kind help
Regards
Rajasekar
But, some builders are including VAT for the purpose of service tax.
Link - https://www.cbec.gov.in/resources//htdocs-servicetax/faq-29sept11.pdf
Relevant Portion of FAQ
A-10. Is the value added tax imposed by States required to be included for the purpose of service tax?
For the purpose of service tax, State Value Added Tax (VAT) has to be excluded from the taxable value.
I am not able to get any reply from the CBDT office at Anna Nagar Chennai on this clarification, as the builder might not accept anything other than a letter from the tax authorities.
I need your help on two things
a) whether my understanding on the non-inclusion of VAT for ST is correct?
b) How to enforce this with the builder not to charge ST on VAT
Thanks for your kind help
Regards
Rajasekar
CA R SEETHARAMAN
(Expert)
23 November 2016
a) Your understanding is right.
b) Show the Sl No. 3 of circular to the builder. Circular No.192/02/2016-Service tax.
b) Show the Sl No. 3 of circular to the builder. Circular No.192/02/2016-Service tax.
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