Tax applicable object labour with material

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Patel (Querist)
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15 November 2014 my uncle is doing business of airconditioner selling and repairing he is raising labour with material invoice in such case how much tax he has to charge ?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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16 November 2014 In such a case VAT is to be charged on sale of components or spares and ST is to be charged on the service/labour charges....mjk

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Patel

Patel (Querist)
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22 November 2014 thank you sir,

he is charging 8% MVAT in labour+material invoices and nil service tax

he is saying it is not possible for him to segregate labour and material

kindly let me know what he is doing is correct ?

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