Service tax + vat

This query is : Resolved

SANJAY S.SHARMA (Querist)
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08 March 2012 Dear Sir,

I have one more query regarding AMC & VAT, Please reply

We have placed an order for Computer/server/other edp material & given an AMC for its maintenace

Party has provide us a bill for

Basic value of all above material 700000/-

Service Tax 10.3% 72100/-

Vat 5% 38605/-

I have a querry whether Vat is applicable in this bill.

It leads to double taxation. Plz suggest me with any circular. It will greatly helps me.

Please advice

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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08 March 2012 VAT is applicable for the material used in the during the installation or services provided and service tax is only applicable for the service part.