Querry on VAT and Service Tax Liability

A firm is engaged as advertising agency, who makes signboards for companies. Entire activity right from designing, printing, fabricating and installation is undertaken by the firm

What will be the VAT and/or Service tax liability of the firm???

Replies (5)

I need to know State-wise VAT payment dates and also return filling dates. In case any one have a compiled data, please share 

Originally posted by : RANJAN

A firm is engaged as advertising agency, who makes signboards for companies. Entire activity right from designing, printing, fabricating and installation is undertaken by the firm

What will be the VAT and/or Service tax liability of the firm???

 Hi Ranjan,

I think both Service tax and VAT is applicable.

Assume the contract value is Rs. 1,00,000 which includes both materials (on which VAT is applicable) and Services (on which Service tax is applicable).

As per the Works contract chart provided by state commercial tax dept. If you are unable to ascertain Rs. 1,00,000 for materials and services dept has given a chart (state specific) by using the chart you can calculate vat and service tax.

lets assume chart says that 80% (on material) and 20%(labour charges)

On 80% of Rs. 1,00,000 VAT needs to be calculated

On 20% of Rs. 1,00,000 Service tax needs to be charged(without any abatement).

can anybody confirm this procedure please......

With regards,

Subramanya R

Service Tax and Vat both are not applicable on total value, in some cases both are applicable when both are applicable then the VAT is applicable  only on material cost as per the respective tax rate and service tax is applicable on labour and other charges as per service tax rules.

As suggested by Mr. Subramanya, its better to segregate the material Involved in the execution on the work. On the mateiral portiion VAT will be applicable and balance Service potion Service tax will be applicable. If it is not possible to segregate material portion, as per AP Vat ACT/Rule 30% of the work will be considered as labour and balance 70% is chargeable under VAT. You need to check your state Act.

I have a outdoor advertising client. The bills sent ot the clients(outward bills) have charges on Fabrication, printing and painting all of which are subject to VAT. Can you please help me by providing the applicable VAT Rates for Maharashtra, Delhi, Karnataka, Andhra Pradesh, West Bengal and Punjab and even under which Schedule will each of the components be charged? Urgent reply expected, Thanks in advance.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details