Vat and service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2014 hi experts and friend i have one query :- one dear have collect 60/% and 70% service tax on one goods plz give right ans Thanking You

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2014 hi experts and friend i have one query :- one dear have collect 60% vat and 70% service tax on one goods plz give right ans Thanking You
09/06/2014 12:2

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Hey! Your query is a bit unclear, but here’s what I understand and how I can help:

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### VAT and Service Tax on Goods

* **VAT (Value Added Tax)** is a tax on the sale of goods within a state.
* **Service Tax** is a tax on services provided.

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### Key points:

1. **VAT is charged on goods.**
2. **Service tax is charged on services.**
3. **You cannot charge both VAT and service tax on the same goods** because service tax applies only to services, not goods.

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### Your query:

If someone charged 60% VAT and 70% service tax on one product — that sounds incorrect or a misunderstanding.

* First, **VAT rates are never as high as 60%** — typical VAT rates range from 1% to 15% depending on the state and product.
* Second, **Service Tax rates were around 12%-15% during 2014, never 70%.**
* Possibly, there is confusion or miscommunication.

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### What to do?

* Check the invoice carefully.
* Verify if the charge is VAT on goods and service tax on services (like installation, warranty, or insurance).
* If it’s a goods purchase, only VAT should apply.
* If there is a service attached, service tax should be applied separately but within normal rates.

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If you want, send me the detailed bill or context, I can help clarify better!

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