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Service tax when bill includes goods and service?

Queries 1078 views 8 replies

if a bill of contractor incudes goods and service provided then how we should charge service tax and VAT? is service tax is charged on the gross bill of the amount? In which preference  we charge VAT or service tax ?

Please answer with applicable rules or any case reference.
 

Replies (8)

bill must be issued by splitting into two parts -

goods sold and (this is chargable to VAT/CST)

services rendered (this is chargable to Service Tax)

i know bill should be bifurcated but in practical life (e.g in case of AMC) only a single bill is raised. Please answer if there is only single bill.

this is a case of WCT

if any service provider is rendering sevices and goods are being suppled, in that case, if the value of service and the value of goods combined on a single bill then service tax shall be charged on the total amount.

these rule may be called works contract (composition scheme for payment of service tax), Rules,2007

Mohit

if the Contractor bill includes Goods & services we need to charge the WCT & service tax also. Now the question arises on which amount we need to charge the Service tax. Service tax Should be charge on the (Gross amount + WCT amount)

Dear Mohit,

Pls refer to Service Tax (Determination of Value) Rules. The gross amount for Service Tax will exclude the VAT/State Sales Tax  (WCT).

Thanks,

Ganesh

What is the service we are talking about?

On the goods only VAT tobe charged On service ST. Neither tax tobe included for computation of the other.


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