We have purchsed a Anti Virus Paper Licence from a firm havind vat registration and service tax registration. He charged Vat 4% and then service tax on whole amount
Example :-
Let Paper Licence Value 100.00 vat 4% 4.00 ------ 104.00 service tax 12.36% on 104.00 12.85 ------ 116.85
Now Query is:-
1. Should he charged Service tax on Rs. 104.00 or not, if yes then OK, if not then on what amount he should charged service tax.
2. Should we deducted tds on Rs. 116.85 or not if yes on what amount, if not then is OK.
02 July 2008
service tax never be applicable on sale of goods. in your particular case is concern you have purchased (not returnable) licence, so service tax not seems to be applicalbe on that. as TDS is concern, under a sale transaction TDS also not applicable.
CAclubindia
