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Urgent :Service Tax and VAT

Mahavat 691 views 3 replies

I am selling Softwares....

on of my bill is Invoiced as

Basic Amount                     100

VAT @ 4%                         4

Service Tax (104*10.30%)   10.712 

Total:                                 114.712

My question is whether service tax calculated is correct or it should have been charged only on 100 .i.e 10.30 only and not10.712

 

Please Provide reliable answer.

And answer if you are 101% sure

Replies (3)

service tax is not chargeable on VAT/Sales Tax component. It is mutualy exclusive.

Thank you Very much Sir

Service tax act says service tax should not charge on cost of good so you have to bifurcate or you should raise separate invoice for both service tax and vat….


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