05 November 2008
We are the service provider to the other institutions like ITI along with software programming. We take Annual Maintence Contracts - Comprehensive. Now the question is Section 4(1) c of KVAT says we have to pay works contract @ 4% and as a service provider we have to pay Service Tax @ 12.36%.
Why we have to pay 2 taxes?. Our customers are almost govt.dept.not agree to pay 2 taxes. How to show the same in the books of accounts?.
CAclubindia
