14 October 2010
I am regd.electrical contractor for PSU. I render services of some mechanical and electrical services as maintenance of petrol pums of BPCL Co. I have to carry spares about 0 to 200 k.m for this work. I am being paid Services & maintenance charges inclusive spares and transportation.No seperate tax are are levied / added as per agreement. My estimated turnover for this year is expected of Rs. 12 lakh. and I am registered under service Tax and M VAT. HOW COULD BE MY TAXABILITY UNDER BOTH M VAT AND SERVICE TAX. AS SPARES OF NEGLIGBLE AMOUNT ( AS TRAVELLING & TRANSPORTATION )AND OTHER CHARGES ARE HIGHER AS I RENDER SERVICES FROM 0 TO 200 KMS ON SITE OF PETROL PUMP. EXPRTS ARE
14 October 2010
If as per service contract , you are providing services based on rate contract or AMC , you have to pay dervice tax on total billed amount. Since spares value is negligible, and you are also not making the bill seperatelly for spares , service tax is payable on total amount.
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