My company has given annual maintenance contract for Lift to a ltd company in Gujarat. They have charged both service tax and VAT in their bill as under:
| Annual Maintenance Charges | 64638 |
| Service Tax @ 12.36% on 60% of basic amount | 4794 |
| VAT @ 12.5% on 85% of basic amount | 6868 |
| Additional VAT @ 2.5% on 85% of basic amount | 1374 |
| Total | 77673 |
Can anyone help me with explanation of above taxability with circular or notification of VAT and service tax. The company has charged service tax on 60% and VAT on 85%. Thus total chargable amount comes to 145% which shows there is double taxation is there.
CAclubindia
