Vat & service tax
This query is : Resolved
05 April 2012
Dear All,
our company has a contract with X company for Printer Maintenance & Repair services.The printer & pages are ours & only the toner & service is provided by them
We receive the invoice ones in a month. They are charging us on the basis of Number of copies used. Here they are charging both VAT & SERVICE TAX.
Is this acceptable?
If yes, on what basis they are charging that?
Please explain.
our company has a contract with X company for Printer Maintenance & Repair services.The printer & pages are ours & only the toner & service is provided by them
We receive the invoice ones in a month. They are charging us on the basis of Number of copies used. Here they are charging both VAT & SERVICE TAX.
Is this acceptable?
If yes, on what basis they are charging that?
Please explain.
Tushar Desai
(Expert)
05 April 2012
They are providing you
1. Toner --> VAT Applicable
2. Repair Services --> Service Tax Applicable
So, Kindly check your invoice. VAT is applicable only on Toner Purchase (Not on Services Amount), and ST is applicable only on Services Amount (Not on Toner Amount)
1. Toner --> VAT Applicable
2. Repair Services --> Service Tax Applicable
So, Kindly check your invoice. VAT is applicable only on Toner Purchase (Not on Services Amount), and ST is applicable only on Services Amount (Not on Toner Amount)
Message likes :
1 times
05 April 2012
Thanks Thushar,
But as i told earlier they are charging us on the basis of number of copies used & not on the cost of toner or service.
In invoice i notice that they have charges ST on 100% of the value & VAT on 75% of the value.
How is this possible?
But as i told earlier they are charging us on the basis of number of copies used & not on the cost of toner or service.
In invoice i notice that they have charges ST on 100% of the value & VAT on 75% of the value.
How is this possible?
Tushar Desai
(Expert)
05 April 2012
The matter needs to be scrutinized. I am amazed by what you have said. I advice you to ask for clarification from your supplier. Just tell him in a polite tone that what he is doing is incorrect, & tell him the correct manner of Taxation. Let's see what comes out.
Tushar Desai
(Expert)
05 April 2012
if you have other alternatives, you may talk aggressively, otherwise else pls wait for his reply.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on purchase of under construction property from a reseller
- Non filing of I T Returns
- UDIN ISSUE
- TDS on Fixed Assets purchased
- SALARY CAN BE CAPITALIZE
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
