When the VAT & Service Tax applicable together?

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Anil Chavan (Querist)

13 August 2008 Hi Sir / Madam

I have querry regarding VAT & Service Tax.

I saw in many bills with VAT & service Tax both are mentioned, but I want to know that when it is applicable that we have to mention both the taxes in invoice.

As per my knowledge VAT will be applicable when we are selling any article or goods & service tax will applicable when we are providing any service to our client or customer.

Can anybody please tell me that VAT is also applicable on labour charges or not?

Regards
Anil

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)

13 August 2008 Only labour charges does not attract VAT other than service tax.

However labour charges with material (works contract) attract VAT under works contract tax and service tax as well.

Anil Chavan

Anil Chavan (Querist)

18 August 2008 Thanks for the reply Satish but My question is When the VAT & Service Tax will appicable to charge in Invoice together?

Please reply?

Regards
Anil

Satish K Sekhar.ACCA

Satish K Sekhar.ACCA (Expert)

18 August 2008 No such situation seems to arise for any kind of business.

However it may be possible when RA bill of a works contract is raised VAT under works contract TAX and service tax can be chargeable in the same bill provided the contract agreement stipulates so.

Anil Chavan

Anil Chavan (Querist)

20 August 2008 Thanks for your reply Satish.

Regards
Anil

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