Vat Construction order

This query is : Resolved

SUDIP UPADHYAY (Querist)
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21 August 2008 Vendor is charging 8%VAT on the whole bill for construction of foundation for telcom tower in Maharshtra. He is also charging Service tax on 33% of the bill value.

Is it correct beacause on 33% percent of the bill value both VAT and Service tax is being charged.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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17 September 2008 Tax on WC is applicable on the value of goods (to be calculated in a specific way- as prescribed under the ACt and Rule). Unless and otherwise the dealer (contractor)VAT should not be charged on the whole amount of WC.