TDS Cum SERVICE TAX

This query is : Resolved

AMIT SHARMA (Querist)
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02 July 2008 Dear Sir

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.

Please clarify as soon as possible

Sanjeev Kumar

Sanjeev Kumar (Expert)
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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.

C.rajesh

C.rajesh (Expert)
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02 July 2008 yes sanjeev kumar is correct

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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02 July 2008 I am also agree with Sanjeev Kumar.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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03 July 2008 I do agree with Sanjeev. Further i would like to add one point here:

Service Tax and Vat are mutually exclusive...i.e., when Service Tax is applicable, Vat will not be applicable and vice-versa

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