S.t and vat on more than 100% of bill in case of works cont

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RANJAN (Querist)
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21 September 2012 Sir,

The interesting matter for this year's service tax changes are that one of my service provider of composite AMC contract for UPS is charging VAT as per Delhi VAT Act on 80% of bill value and charging Sevice Tax on 70 % of Bill Value .Is it justified?

Please let me know at the eraliest.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2012 Quite interesting. But the courts have held the view that both The service Tax Act (Finance Act) and VAT act are independent of each other as well as constitutionally valid. So the treatment given by the vendor seems to be justified.

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