VAT on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2010 can anybody give clear picture on VAT on SERVICE TAX as follow:
one of our customer
AMC of firewel charges:10000
add:service tax@10.30%
i,e, 11030
again charge VAT under AP @4% on 11030

Is it correct procedure?
If yes than under which rule it is ok, or say 'wrong' which section will be attarch for this

ITs most urgent

VINOD ARORA

VINOD ARORA (Expert)
Follow

17 August 2010 yes this is the correct procedure.

I believe the invoice is being raised by a dealer under composition scheme wherein a concessional rate of 4% is applied on total contract receipts (inlcuding service tax) before charging VAT.

Hope this clarifies your concerns.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2010 its good information but under which composition scheme follow-up please provide the same.
Thanks for getting information.
Regards,

Upgrade to CAclubindia Pro. Subscribe Now!