Service tax payable with sales TAX TDS

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Santosh Kaluskar

Proprietor

27 Points Posted on 28 January 2010

Hello! I am a Railway Cntractor and registered as Contractor in CoT in Sales TAX. Iam Carrying out an AMC of some Telecom Asset, My query is while billing is done by Railways, say Rs.1,00,000/- Rlys. is deducting 4% of sales TAX and then Iam liable to pay service tax on Rs.1,00,000/-. Now here the value of sale is very less, though 4% is deducted in a AMC. In othe work contracts it is deducted it is justified, My query is how should i claim the excess sales TAX deducted in AMC while paying service tax (Difficult I feel as ST is a Central subject and Sales TaX is State Subject) Is there any notification for Non deduction of Sales tax in case of AMC or similar services where service and sales both are involved. Seniors Kindly guide me through this complication. ThanX, regards.

Replies (2)

Vishwas

Articled Assistant

26 Points Posted on 29 June 2010

Hello,

My client is registeed under COT, and he is paying sales tax regularly, now my querry is whether he is liable to Service tax and if yes at HOW much percent ?

Seniors please help,

Thanks & Regards

Vishwas

Dilip Darji

334 Points Posted on 29 June 2010

If the job entrusted to you is covered under the defibnition of WORKS Contract and property in the goods is transferrred and the contract is leviable to tax as sale of goods, you are required to pay only sales tax and not Service Tax.

Otherwise also works contract in respect of road, airports, railways, transport terminals, bridges, tunnels and dams are excluded.

Please refer the cefinition of Taxable Service under Sub-clause (zzzza) of Section 65 (105) of The Finance act, 1994.