Whether vat is charged on service tax also ?
This query is : Resolved
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....
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....
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
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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