Income bifurcation

739 views 2 replies

sharad

157 Points Posted on 11 January 2012

An advertising agency provides services of establishing roadside hoardings.As an advertiser he provides services but he indulges himself in buying matterials for construction of respactive hoardings as well which makes him credible for cenvat credit n some part of his income as chargeable under vat as well.how should his income turnover be bifurcated towards Service Tax as well as vat!

Replies (2)

CA Unnikrishnan Nair N

Chartered Accountant

2083 Points Posted on 11 January 2012

You can claim 12/2003. ie. value of goods subjected vat may be excluded. But Kerala High court in Zodiac Advertisers held that entire amount is liable to service tax.

rahul

FINAL

21 Points Posted on 15 April 2012

Originally posted by : CA Unnikrishnan Nair N
	You can claim 12/2003. ie. value of goods subjected vat may be excluded. But Kerala High court in Zodiac Advertisers held that entire amount is liable to service tax.

Sir can you please clarify that if we are claiming 12/2003,then on what amount do we have to pay the VAT?

Is it the total composite bill amount or the amount of value of materials used because there is no specific provision in state vat act regarding advertising services?Our client is from delhi and makes sign boards and banners on customer's request?

I would be highly obliged in case you put some light on this matter..

Regards

Rahul