An assessee has raised Tax Invoice for material supplied.
He has also charged installtion charges in the same invoice for installtion the materials
at work site of the customer. At the time of calculation of VAT, he has considered both
material as well as installtion charges.
My question is that whether VAT is applicable on installtion charges as per Maharashtra Vat.
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Vat applicable or not?
Replies (5)
VAT- is only for value addition -
vat is not applicable on installation and comissioning. - houever supplier can charge service tax on installation & comissioning
Dear kishor
VAT applicable only on sale of goods.
On the installation part , service tax is applicable .
Yes Vat is only applicable to material part
and for installation charges service tax is applicable
Vandor charge VAT only on Supply of Materils & for Instllation & commission he can charge Service Tax on this.
Installation charges is in the nature of services provided & not considered as goods for the purpose of VAT.
Moreover the same has been shown in the invoice seperately clearly specifies the same.
Had it been not shown seperately in the inovice VAt would have been charged on the entire value.
Conclusion:
Sale of good = Pay VAT
Service provided = Pay Service Tax
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