Dear Collegues,
N.Kiran Kumar
N.Kiran Kumar (Manager) (41 Points)
23 October 2009Dear Collegues,
N.Kiran Kumar
Rajeev
(EO)
(54 Points)
Replied 24 October 2009
NO. VAT need not be paid on service tax element. VAT is payable on value of goods, in ur case, Food , sales value of which is Rs. 100/-. Service tax is payable on value of Service (here Rs. 60/- after adjusting abatement). VAT is on sale of Goods. Servce Tax is on sale of service. Your invoice will also show two separate taxes. I am attaching here a sample of a Car service company wherein both VAT and Service Tax are involved. This will help youunderstand better.
Vijay D
(Finance Executive)
(227 Points)
Replied 26 October 2009
Raise separate Invoices for Supply of materials & rendering of Services. Where is the need to club both activity in one Invoice?? If you are not executing any works contract then it may not be problem for you & if you are in Works Contract then follow the segrigation ratio of VAT & Service Tax as applicable in your State.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)