Application of both servicetax & vat
This query is : Resolved
17 October 2012
sir,
i have seen that one website devlopment co.has devloped and designed site for my client n have charged service tax & vat both as a percentage of 12.36 and 4+1 respectively. so i want to know wheather both is applicable and if yes than wats the reason for charging the both combine???
i have seen that one website devlopment co.has devloped and designed site for my client n have charged service tax & vat both as a percentage of 12.36 and 4+1 respectively. so i want to know wheather both is applicable and if yes than wats the reason for charging the both combine???
17 October 2012
vat and service tax both are levied genearlly in case of works contract where supply of goods as well as service is involved..on the goods/materials part,vat is levied and service tax is levied on labour/service part..
Acoordingly,you need to verify the same
Acoordingly,you need to verify the same
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18 October 2012
ya sir but itz of website devlopmen...so n itz not possible to biforgate coz they have charged both on full amt of invoice...
18 October 2012
then they must have charged St on 40% of billvalue
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18 October 2012
under the alternative method,where the bifurcation is not done st should be charged on 40%/60% on bill value depending on the nature of works contract
18 October 2012
k thx so now what i have to do whether to deduct tds or not or if yes than 194(c) or 194(j)
18 October 2012
if there was a contract with the client,194c otherwise 194j
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18 October 2012
Dear Jay,
Can You Specify Here With Numericals.
Because on Total Invoice 12.36% + 5% Cant be Charged.
Otherwise You Please Confirm it Once Yourself.
Apart From This TDS@194C Need to be Deducted, Since Its Forming a Contract.
Can You Specify Here With Numericals.
Because on Total Invoice 12.36% + 5% Cant be Charged.
Otherwise You Please Confirm it Once Yourself.
Apart From This TDS@194C Need to be Deducted, Since Its Forming a Contract.
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18 October 2012
total biil amt.121600
s.t.@12.36% 15030
vat @ 4% 4864
vat @ 1% 1216
total 123095
s.t.@12.36% 15030
vat @ 4% 4864
vat @ 1% 1216
total 123095
18 October 2012
Your Total Bill Amt. 121600, or 123095/-
Check Again.
Check Again.
18 October 2012
total amt is 142170
less discount is 19615
so amt is 123095...
less discount is 19615
so amt is 123095...
18 October 2012
This Bill is Wrongly Constituted.
Since This is New Work Contract in This Case Only on 40% Portion is Service Tax Chargeable.
VAT as Applicabel in State Wise that is 2% Most of State.at Composite rate.
Bill Should be:-
121600
+service tax @20% under partial service tax reverse charge
+ on total amount VAT @2% or as applicable.
Since This is New Work Contract in This Case Only on 40% Portion is Service Tax Chargeable.
VAT as Applicabel in State Wise that is 2% Most of State.at Composite rate.
Bill Should be:-
121600
+service tax @20% under partial service tax reverse charge
+ on total amount VAT @2% or as applicable.
18 October 2012
I Mean Service Tax 20% of 12.36. Paid & Invoiced by Developer.
& Rest 20% of 12.36 Paid by U directly to Goverment.
& Rest 20% of 12.36 Paid by U directly to Goverment.
18 October 2012
partial reverse charge mechanism..pls go through the amendments in works cotract
18 October 2012
https://www.caclubindia.com/articles/works-contract-service-after-negative-list-part-i-15391.asp
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