Service Tax and VAT in same transaction ?
This query is : Resolved
26 February 2008
I know that Vat will be chargeable even if Srevice Tax is applicable in some transactions(Ex. in case of works contract). My doubt is that the act says that if the assessee takes INPUT CREDIT of VAT, he has to pay VAT separately. I dont understand this concept. Does this mean that if VAT is not charged separately, Service Tax is chargeable for cost of materials provided along with the cost for service ?
26 February 2008
THe question is not understandable. State the problem with examples
26 February 2008
PLEASE CLARIFY IT
26 February 2008
What is the procedure when both Service Tax and Vat are applicable in the same transaction ? when can the assessee take input credit on Vat in such a case ?
26 February 2008
You are integrating two different statutes.
Vat is equivalent to Cenvat under service tax.
The works contract service tax takes into account both goods and service.
There are three options, I am sure if you read them carefully you will have an answere to your inquiry.
Still should there be any doubts feel free to raise your inquiry again with suitable example on hand or that you are facing
Vat is equivalent to Cenvat under service tax.
The works contract service tax takes into account both goods and service.
There are three options, I am sure if you read them carefully you will have an answere to your inquiry.
Still should there be any doubts feel free to raise your inquiry again with suitable example on hand or that you are facing
27 February 2008
Question is not clear. VAT & Service Tax are different.
27 February 2008
In case of indivisible contracts WCT is charged on the entire value of contract but the calculation of taxable value for the purpose of WCT is different in various states. Generally there is a abatement of 10/20/30/40 % for arriving at the taxable turnover, in most of the cases it is 20% in all the states.
Input tax credit is available irrespective of abatement.
Basicly the abatement is to ascertain the value of material sold in the contract where it is not possible to ascertain the goods and service portion.
However service tax will be paid on the full value in case of composite contracts.
If it is possible to bi-furcate the two then the taxes will be paid on the respective values.
Input tax credit is available irrespective of abatement.
Basicly the abatement is to ascertain the value of material sold in the contract where it is not possible to ascertain the goods and service portion.
However service tax will be paid on the full value in case of composite contracts.
If it is possible to bi-furcate the two then the taxes will be paid on the respective values.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
