17 October 2012
sir, i have seen that one website devlopment co.has devloped and designed site for my client n have charged service tax & vat both as a percentage of 12.36 and 4+1 respectively. so i want to know wheather both is applicable and if yes than wats the reason for charging the both combine???
17 October 2012
vat and service tax both are levied genearlly in case of works contract where supply of goods as well as service is involved..on the goods/materials part,vat is levied and service tax is levied on labour/service part..
18 October 2012
under the alternative method,where the bifurcation is not done st should be charged on 40%/60% on bill value depending on the nature of works contract
Can You Specify Here With Numericals. Because on Total Invoice 12.36% + 5% Cant be Charged. Otherwise You Please Confirm it Once Yourself. Apart From This TDS@194C Need to be Deducted, Since Its Forming a Contract.
Since This is New Work Contract in This Case Only on 40% Portion is Service Tax Chargeable. VAT as Applicabel in State Wise that is 2% Most of State.at Composite rate.
Bill Should be:- 121600 +service tax @20% under partial service tax reverse charge + on total amount VAT @2% or as applicable.
CAclubindia
