Whether Vat is leviable on Service Tax

This query is : Resolved

Girish Sharma (Querist)
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07 May 2010 My client is a outdoor caterer taxable under both VAT & Service Tax.
My query is how should he generate bill.
For ex:

He has a bill of 100000/-
Service Tax applicable @ 5.15%
Vat applicable @ 14%

Whether he should charge service tax on basic and then charge VAT on the sum of two i.e.
Basic Price 100000
Ser.Tax @ 5.15% 5150
Total 105150
VAT @ 14% 14721
Bill Value 119871

Is the above calculation right. Please reply with suitable rules if any

Thanks
Girish Sharma

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 May 2010 As my understanding in your query the caterers claiming abatement scheme under Service tax ( because he is charging VAT & ST both ) but the Assessable value under Specific state VAT act you need to check with the Local VAT act. whether assessable value inclusive of Service tax or not please refer the same

Sanjeev Kumar

Sanjeev Kumar (Expert)
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14 May 2010 Yes. you are charging tax(s) correctly.

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