Service tax billing

749 views 4 replies

Gopinath

Accountant

29 Points Posted on 16 July 2012

Dear All,

I am a service provider along with supply of material. I would like to know the procedure for billing. My contract is for value of material and service provided. That is if the total value is for Rs.100/-; Rs.65/- goes to material cost for which I am paying Sales Tax (VAT). I am incurring Rs.20/- towards freight charges for which I want to pay Service Tax availing the abatement i.e., I would like to pay 25% of the freight amount only. The balance Rs.15/- is for supply of labour, loading/unloading charges, etc., for which also I want to pay Service Tax at 12.36%.

My question is whether I can prepare only one Bill clubbing the VAT portion bill and SERVICE TAX portion bill OR whether I have to prepare two Bills one for VAT portion and another for SERVICE TAX.

Thanks in advance

Replies (4)

Karthik.M

CA Final

77 Points Posted on 16 July 2012

Hi Gopinath, In my view you can do it in a single bill by showing different line items....

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 18 July 2012

Both in Vat and Service tax it is mandatory that you have to maintain separate set of serial number of invoices. Now if you can bifurcate the material portion and service portion on actual basis, then it is advisable to prepare two separate set of invoices for each, else as a WCT, there will be deduction @ 2% or 4% form your total invoice value. Decision is yours.