Dear All,
I am conducting an audit of motor vehicle authorised service station, which is registered under composition scheme at 8 % and is also registered under Service Tax, But when they bill customer on Body Paint (i.e when car is painted and repaired) they levy both VAT and Service Tax I.e on 80 % of Body Paint Value Vat @ 8 % and on 20 % of body paint value service tax @ 12.36%.
Request you to please guide weather it is correct or not ? If its wrong what is the correct way ?
It is correct,because painting work has low labour component than others. So,that ratio adoption is ok....mjk
Dear Sir,
Is it correct that dealer can decide the 80 - 20 ratio for Vat and Service Tax, as the other dealer of the same company charge vat @ 12.5 %.
Can I get some notification on it ?
N N V Satish & Co.,
Hyderabad
CA Inter
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HKC | Chartered Accountants & Business Advisors
Ludhiana
CA
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AJAY SINGH AND CO LLP
Thane
CA Final
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ADY & CO.
New Delhi
Graduate (Any)
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CCI
Pro
CAclubindia
