Hari Om Friends,
A Pvt Ltd company having business of computer hardwares and software is charging VAT @ 4% on sale of computer hardware and is also charging Service tax @ 10.3% For the A.Y. 2011-12 on installation services. Both the VAT and Service tax are charged on the gross value of the Goods , For example , if they are selling 2 printers worth Rs 15000/- each, then they charge Vat @ 4 + additional vat @ 1% on (15,000*2=30,000) and service tax @ 10.3% on Rs 30,000/-.
Now , my query is how can they charge service tax on value of goods sold, I mean what is the criteria of classifying the value of goods sold and services provided??
Thanks in advance...!!
CAclubindia
