Charge of VAt & Service tax on same Invoice

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Hi to all

budy i received invoice from renowned Hotel & they are charging VAt @ 12.5% &  Service tax @ 12.24% on same invoice & they on clarification say that one is Central subject & other one is State so that why they are doing this .

so please help whether they are right or not ?

Rgds
Vikas
Replies (4)
hello vikas,
this is the most controversial point on service provider that with implementation of VAT regimen they have to pay VAT along with the service tax. The hotels, vehicle service centers, restaurents.etc. all are effected by this provision.
regarding your question the hotel management is right. However one point to remember is that they have to show the amount of VAt and Service tax seperatly.

bye
from shivprakash
Shiv Prakash Sir, have you completed articleship, don't mind me asking,  if so from where since you see to have sound knowledge? Please let me know  :)
Originally posted by :Shiv Prakash
" hello vikas,this is the most controversial point on service provider that with implementation of VAT regimen they have to pay VAT along with the service tax. The hotels, vehicle service centers, restaurents.etc. all are effected by this provision.regarding your question the hotel management is right. However one point to remember is that they have to show the amount of VAt and Service tax seperatly.byefrom shivprakash "


 

Hi to all

budy i received invoice from an annual maintenance contractor for computers & they are charging VAt @ 4% &  Service tax @ 12.36% on same invoice can they claim that? If there is any such provision pls let me know where it is.
 
Rgds

srikar


CCI Pro

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