VAT/SERV TAX APPLICABLE IN CAR GARAGE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2010 Dear sirs

we are reparing car & chareges to customer labour charges as well as if required we are also changing parts for which we also charge to customer my question is
1)vat is applicable on labour charges income or service tax?
2)or vat is applicable on parts changing case & service tax is applicable on labour charges

please clarify.

Jitender

Jitender (Expert)
Follow

19 March 2010 1 service tax is applicable on services
2. vat is applicableon parts.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
Follow

20 March 2010 Further to add;

You have to mention the cost of Parts seperately to charge VAT, and Labour Charges for charging Service Tax else the Service Tax will be applicable on etire bill amount since it will be treated composite service i.e service with material used.

Regards
K.L.Paliwal

Upgrade to CAclubindia Pro. Subscribe Now!