We are a company operating in Karnataka.We are paying service tax to our canteen contractor.(after 50% abatement)Now, he is claiming Karnataka VAT of 5% (Under composition scheme as selected by canteen contractor) on the entire value of the bill.
My question is on 50% we have paid service tax.On the remaining 50% we will pay VAT @ 5%.
Is it correct ?
No... You have to pay VAT on the total turnover..
Vat will be paid on the eitire amount. Though service tax will be paid on the 50 % on Service Component.
How to calculate service tax and vat on out door catering with Example?
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