mohit patwa (article) (36 Points)
19 August 2010if a bill of contractor incudes goods and service provided then how we should charge service tax and VAT? is service tax is charged on the gross bill of the amount? In which preference we charge VAT or service tax ?
Please answer with applicable rules or any case reference.
purvi
(some)
(240 Points)
Replied 19 August 2010
bill must be issued by splitting into two parts -
goods sold and (this is chargable to VAT/CST)
services rendered (this is chargable to Service Tax)
mohit patwa
(article)
(36 Points)
Replied 19 August 2010
i know bill should be bifurcated but in practical life (e.g in case of AMC) only a single bill is raised. Please answer if there is only single bill.
Mohit paliwal
(ca-final)
(62 Points)
Replied 20 August 2010
if any service provider is rendering sevices and goods are being suppled, in that case, if the value of service and the value of goods combined on a single bill then service tax shall be charged on the total amount.
these rule may be called works contract (composition scheme for payment of service tax), Rules,2007
honey gupta
(finance Executive)
(48 Points)
Replied 20 August 2010
Mohit
if the Contractor bill includes Goods & services we need to charge the WCT & service tax also. Now the question arises on which amount we need to charge the Service tax. Service tax Should be charge on the (Gross amount + WCT amount)
Ganesh
(CA)
(111 Points)
Replied 21 August 2010
Dear Mohit,
Pls refer to Service Tax (Determination of Value) Rules. The gross amount for Service Tax will exclude the VAT/State Sales Tax (WCT).
Thanks,
Ganesh
Gagan Agarwal
(Manager)
(207 Points)
Replied 25 August 2010
What is the service we are talking about?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 26 August 2010
On the goods only VAT tobe charged On service ST. Neither tax tobe included for computation of the other.
Excel Mastery Program
CAclubindia
