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Service tax calculation

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Harikrushna jajal

Accountant

55 Points Posted on 01 March 2013

pls give me the idea about the following point.

When there is service tax and VAT , then VAT is calculated on service tax inclusive amount or service tax is calculated on amount inclusive of VAT?

If there is any notifications or circular regarding any option or any reference regarding that then that also provide with the answer.

thanks

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

2884 Points Posted on 01 March 2013

In Imagic Creative Pvt Ltd v CCT (2008) SC it has been held that Service tax and VAT are mutually exclusive. In case of a composite contract VAT cannot be imposed on portion relating to value of service.

Regards,

Nikhil

Internal Audit Executive

30 Points Posted on 04 March 2013

separate the sevice portion by deducting the value of goods attracting VAT... by doing so u arrive a service portion. charge service tax on that remainder amount.

there are composite schemes as well for works contract..