validity of invoice

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bipin.m.patel

bipin.m.patel (Querist)

12 November 2008 If a contractor raises an invoice in which he charges services tax for his services as well he also charges for vat for material he supplied.for example
manpower supply Rs 100
service tax 12
ES .24
HES .12
Total 112.36
material supply 100
vat @4% 4
Total 104
and both vat and services tax is eligible for credit .
Is this bill is valid or not ? or he has to prepare saperate invoces for service tax and vat.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

12 November 2008 If the service and supply of material form integral part of a single contract, then it has to be a Works contract and both service tax and VAT will be applicable. Of course, you have choice of composition.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)

12 November 2008 I WOULD BE BETTER TO RAISE INVOICE LIKE BEING RAISED BY AUTOMOBILE SERVICE CENTRES WHICH CONTAINS ON COLUMN FOR ITEMS CHARGABLE TO SERVICE TAX AND OTHER FOR ITEMS CHARGEABLE TO VAT. INSURE THAT THE BILL FORMAT SATISFY THE REQUIREMENTS OF BILL FORMART UNDER BOTH THE LAW.

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