Whether vat is charged on service tax also ?

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prasanna (Querist)

13 March 2013 Will you please clarify that-
eg.- sale value both service and goods) Rs 1000
service tax @12.36% and vat is @ 12.5%

then on what amount vat is to be charged? on Rs 1000 or 1000+service tax @12.36% ie Rs 1236.

Please give valuable reply....

javad

javad (Expert)

13 March 2013 Vat is calculated on value + excise duty/ service tax

Sunil Mate

Sunil Mate (Expert)

26 March 2013 in the given case, my understanding is this is the transaction of works contract, were the material and labour are both shown in single bill.

actually vat is chargeble on material value and service tax on labour charge.

Suppose Material+Labour value comes to Rs.1000/-. then you have to segregate it into material and labour. if is not specifically possible, then refer the schedule of service where the % of abatement is given. the common ratio is 60-40. in which the vat is chargeble on 60% of bill value and service tax on 40% of bill value

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