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works contract or Service tax

This query is : Resolved 

05 November 2008 We are the service provider to the other institutions like ITI along with software programming. We take Annual Maintence Contracts - Comprehensive. Now the question is Section 4(1) c of KVAT says we have to pay works contract @ 4% and as a service provider we have to pay Service Tax @ 12.36%.

Why we have to pay 2 taxes?.
Our customers are almost govt.dept.not agree to pay 2 taxes.
How to show the same in the books of accounts?.

06 November 2008 Dear All members,
please can any one answer the above questions?

06 November 2008 You have to reoresent to the government only!


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