regarding vat & service tax on photoprocessing labs


(Querist)
30 May 2007
how vat & service tax is calclated on the photo labs.They used to produse print on paper already vat paid .


CA Nikita (Expert)
31 May 2007
Service tax in paid on developing and other services rendered by photolabs.. no matter whether the paper used is VAt paid or not...

CA Nikita (Expert)
31 May 2007
Service tax in paid on developing and other services rendered by photolabs.. no matter whether the paper used is VAt paid or not...

yogesh (Querist)
05 June 2007
u have told on service render by lab.means service is the amount less the material used suppose a person come to lab for printing.he gave the memory card.suppose it contains the 30 pict.and each pict is of 5 rs. so total amount we charge is 150 rs. the cost of paper involve is 120 rs. so service tax is to be paid on 30 rs or 150. i am confused everyone in the busniess is doing the same thing.then why like a readymade shop they used to purchase shirt at 120 and sold it 150 why not they involve in service tax?they r taking the margin.my clinet is again doing the hard work on paper and converting it onto photo.so all the busniess communties should be fall in catergory of service tax.weather is it a doctor.or lawyer or bus transport/tea shops means every one............no one left am i right

yogesh (Querist)
05 June 2007
u have told on service render by lab.means service is the amount less the material used suppose a person come to lab for printing.he gave the memory card.suppose it contains the 30 pict.and each pict is of 5 rs. so total amount we charge is 150 rs. the cost of paper involve is 120 rs. so service tax is to be paid on 30 rs or 150. i am confused everyone in the busniess is doing the same thing.then why like a readymade shop they used to purchase shirt at 120 and sold it 150 why not they involve in service tax?they r taking the margin.my clinet is again doing the hard work on paper and converting it onto photo.so all the busniess communties should be fall in catergory of service tax.weather is it a doctor.or lawyer or bus transport/tea shops means every one............no one left am i right

CA Nikita (Expert)
10 June 2007
The simple catch is this that if the labs are charging service tax on photoprinting.. like as you said in the above query then service tax will be charged on Rs.150/- but if they are also selling photo papers or photo rolls then service tax won't be charged on such products sold... i hope this removes your confusion..

yogesh (Querist)
07 July 2007
how vat & service tax is calclated on the photo labs.They used to produse print on paper already vat paid . if they are selling paper only then no s.t. is charged.then why if they process it then only s.t. is charged beacuse for processing more labour and expenses is invloved.

CA Nikita (Expert)
13 July 2007
Its simple after services are rendered only then can st be charged on products..

CA Mani (Expert)
01 August 2007
Simple Clarification is that, It is covered in Service Tax as Chargeable service and There is no concept of saparating cost of materials and others in Service Tax.

For Eg, If you sell a SIM card, You have to Pay service tax on entire amount, you cannot say that Card's cost is to be excluded.

Same Logic will apply here also as there is no specific relief for photography services.

CA. O.P. Agarwalla (Expert)
15 December 2007
Dear friends- I was eagerly waiting for some one's comment on VAT applicability on the said transactions. Will it fall under the cluth of taxable of works contract under VAT? Wheteher judgments given in Kame's case & Rainbow's case have been overruled in the case of C.K. Jidheeh?

yogesh (Querist)
01 January 2008
still cofusion on the issue.i don't understand the thing. state govt demands VAT ON PHOTOGRAPHY AND CENTRE GOVT WANTS SERVICE TAX. I DON;T UNDERSTAND WHAT I HAVE TO PAY.IF I PAY BOTH THEN I CANN;T DO BUSNIESS AS PAYING 4% CST + 12.5 % VAT + 12.36 ST WILL MAKE A HUGE AMOUNT.

Dayal (Expert)
28 February 2008
what is the inquiry from the state vat and service tax authorities, can you brief us on that

CA. Amit Daga (Expert)
24 March 2008
you are talking abt what kind of inquiry


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