05 April 2012
Dear All, our company has a contract with X company for Printer Maintenance & Repair services.The printer & pages are ours & only the toner & service is provided by them We receive the invoice ones in a month. They are charging us on the basis of Number of copies used. Here they are charging both VAT & SERVICE TAX.
Is this acceptable? If yes, on what basis they are charging that?
05 April 2012
They are providing you 1. Toner --> VAT Applicable
2. Repair Services --> Service Tax Applicable
So, Kindly check your invoice. VAT is applicable only on Toner Purchase (Not on Services Amount), and ST is applicable only on Services Amount (Not on Toner Amount)
05 April 2012
The matter needs to be scrutinized. I am amazed by what you have said. I advice you to ask for clarification from your supplier. Just tell him in a polite tone that what he is doing is incorrect, & tell him the correct manner of Taxation. Let's see what comes out.
CAclubindia
