SERvice tax and VAt

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Is it possible that one bill will contain both service tax and VAt.

As recently i purchased Ceiling fan from CROMA and i got bill with SErvice tax and VAt both included in the bill.

Replies (5)

yes possible for i.e. when a party is providing you service like guiding about interior and also provide the goods for the same.

the combined bill will be raised by party for that and the bill will include service tax amt separately and VAt amount seprately.

tax for each of them must be indicated separately and not inclusively in such kind of bill.

One particular bill can have both the amounts. The best example is repair & service bills of car service station. However, on amount on which VAT has been charged, on that amount no service tax can be charged as under service tax, goods on which sales tax is paid is specifically exempted from payment of service tax.

yes possible

Is service tax is payable on the amount on which WCT (wORKS CONTRACT TAX @ 4% : A COMPOUDING TAX WHERE BOTH MATERIAL AND LABOUR IS INVOLVED ) is payable.  Department claims that though WCT is payable Service tax is also payable since WCT and VAT are different.  VAT is payable on sale WCT on labour and material.

Originally posted by :Arvind
" Is it possible that one bill will contain both service tax and VAt.
As recently i purchased Ceiling fan from CROMA and i got bill with SErvice tax and VAt both included in the bill.
"


 

In this case there should be no Service Tax. What is the service involved? The SC in the case of Imagic creative has laid down that VAT and Service tax are mutually exlcusive. Only in case of a works contract there wouldbe an exception.

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