Vat & service tax charge on same invoice

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Dear Friends,

We are runing SAP software in our company and choosed one data center to keep all data centrlised one hub. That data controller company who will take care of our data base at their office. We are making annual maintance contract with him for data base control. That party is charging 10.3% service tax and 13.5% VAT also on the same. Please clear about the condition...

Regards

Pradeep Kumar Banduni

Replies (3)

They can charge charge service tax for the service he renders to you. However, They can charge VAT only when they sell something to you. Hence please check up in their bill whether any other details they mentioned like.. stationary sold... etc.. 

In case of above matter they are giving service for data base controling and giving us AMC for the same for 36 month. Why they are charging VAT also this is main question?

Yes they can charge service tax for amc.. if possible pls send the invoice to me.. obulirajanr @ gmail.com

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