Chargeability of servcie tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2011 A co is engaged in repairing and maintenance of machinery.
customer pays towards service charges is as:

Service charges 200+ 10% profit and taxes as applicable
Material consumed: Rs 100
Labour Rs 100

co. is invoicing as
Material 100
profit 10%
vat on mat+profit @ 13.5%
Vat Rs 14.85
Labour 100
profit 10%
service tax @ 10.3%
service tax Rs 11.33
Total amt due from 100+100+20+14.85+11.33
i.e Rs 246.18
whether computation/changeability of vat& service tax is as per vat & service tax rule.

U S Sharma

U S Sharma (Expert)
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29 November 2011 for your convenience, you have to invoice the amount in two parts, 1) vat paid amount, 2) service tax paid amount,

if both the amounts would appear in single invoice it will not as per state vat act, and would be taxed double in state vat where gross amount would be taken in works contract and similer way service tax will be charged on gross works contract.

so invoice both seperately