Service tax and vat on single works contract.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2015 whether a service provider in Works Contract can charge Service Tax on 70% value of Works Contract and VAT on 70% value of Works Contract simultaneously. Which means he is charging Tax on 140% value of Works Contract. Kindly confirm is it correct under Tax laws

CA Vijaykumar Gutte

CA Vijaykumar Gutte (Expert)
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27 February 2015 It is Correct, it depends upon the state.
ST comes under Central Govt and VAT under State, both govt have right to charge tax as decided by them, in many cases it happens double tax on single source.

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