26 February 2008
I know that Vat will be chargeable even if Srevice Tax is applicable in some transactions(Ex. in case of works contract). My doubt is that the act says that if the assessee takes INPUT CREDIT of VAT, he has to pay VAT separately. I dont understand this concept. Does this mean that if VAT is not charged separately, Service Tax is chargeable for cost of materials provided along with the cost for service ?
26 February 2008
What is the procedure when both Service Tax and Vat are applicable in the same transaction ? when can the assessee take input credit on Vat in such a case ?
27 February 2008
In case of indivisible contracts WCT is charged on the entire value of contract but the calculation of taxable value for the purpose of WCT is different in various states. Generally there is a abatement of 10/20/30/40 % for arriving at the taxable turnover, in most of the cases it is 20% in all the states.
Input tax credit is available irrespective of abatement.
Basicly the abatement is to ascertain the value of material sold in the contract where it is not possible to ascertain the goods and service portion.
However service tax will be paid on the full value in case of composite contracts.
If it is possible to bi-furcate the two then the taxes will be paid on the respective values.
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