service tax and vat to be charged

Save Share

This query is : Resolved

alisha (Querist)
Follow

12 October 2009 In case of inseperation between goods and services, should both service tax and VAT be charged??
And if yes, then, wat should be charged 1st : service tax or VAT??
Or should both be charged on the amount of sales itself??

sunny bansal

sunny bansal (Expert)
Follow

12 October 2009 IT DEPENDS UPON THE NATURE OF THE SERVICES PROVIDED , IN CASE SERVICE PROVIDER, IF THEY SEPARATELY SHOWS THE GOOD USED IN PROVIDING THE SERVICE IN THE INVOICE, THEY CHARGED THE VAT ON THE GOODS USED AND CHARGES THE SERVICE TAX ON THE LABOUR CHARGES SHOWN IN THE INVOICE.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
Follow

12 October 2009 Agree with expert.

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
Follow

12 October 2009 In case of inseperation of goods and services you have to charge VAT and Service tax. Further, the VAT is charged on assessable value and also service tax on the same amount.example assessable value is 100. then VAT is charged on Rs 100 at the applicable rate and service tax also on Rs 100.

CA. Vinod Pandey

CA. Vinod Pandey (Expert)
Follow

12 October 2009 It would not be justified to impose double tax on same amount. Service provider must be knowing the value of service as well goods. However, if he/she doesn't then it can be seperated on reasonable basis and both the tax should be imposed accordingly.

Ram Avtar Singh

Ram Avtar Singh (Expert)
Follow

13 October 2009 Vat on sale of material to be charge
service tax on part of service amount.

if both are club not seperet the both will be calculate on assessable value.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now