Service tax on 33% of invoice value

This query is : Resolved

Prajot P. Volvoikar (Querist)
Follow

18 May 2013 Dear sir

I was doing the audit of a shipyard situated in goa. There I found that when the contractee of ship is billed VAT is charged on 70% of invoice value and service tax is charged on 33% of invoice value

I wanted to know how that is possible because 70+33=103

Regards

Prajot

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

20 May 2013 this may not seem logical but this is because of Indian federal system. vat is levied by state govt. and service tax by central govt. and both govt.s charges whatever according to them is correct.. resulting access burden on assesses pocket. this will be over after GST will come into power.. but GST is still 'coming soon'....

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

06 July 2013 This is because the company must have adopted the composite scheme where this is allowed and accordingly you are confused. Kindly read the chapter of composite scheme.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Aakash Kumar

Devendra Singh Jyala

MAYUR

Sivakumar

DHRUV PATEL

Subscribe Now

Service tax on 33% of invoice value

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA