Davison Mathew (Accounatnt) (98 Points)
20 October 2008Hi all,
Anybody advice on:
1) whether both Service Tax & VAT can be applied in a single transaction??
2) While we download IT software via internet from vendor in abroad, is it necessary to deposit service tax on such download by the receipient (the person who down load the software being an organizatio) of the service ?
Thanks & Regards
Davison Mathew
RICHA SHARMA
(CA )
(202 Points)
Replied 20 October 2008
hi
yes, it is possible that service tax and vat is payable on the same transaction exampled work contract services
if you import any services like IT software via internet it will be treated as import of services and you will be liable to pay service tax as in the case of import of service iservice receiver is lialble to pay service tax on behalf of service provider.
bye
tc
Kameswar
(Employed-TCS Ltd.)
(20 Points)
Replied 05 November 2008
Dear Richa,
Please share examples if any other than works contract services
inder jain
(Tax Author)
(43 Points)
Replied 16 November 2008
There can be no doubt that the scope of VAT & Service Tax are entirely different propositions. Therefore, both VAT & Service Tax cannot be imposed on the same transaction. Either the transaction would be sales or service. However like work contract, a certain percentage i.e. 67% of the contract value is sales and chargeable under VAT whereas 33% of the contract value is service and chargeable to service tax. It is not possible that the entire value of work contract can be taxed simultaneously under both the Acts.
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