Professional
211 Points
Joined February 2010
NO.
Servise Tax is charged on service provided or to be provided, whereas VAT is charged on Sale of Goods. Both the transactions are different and mutually exclusively. VAT in NO case .
PS case Law
The Supreme Court has upheld the decision of the Andhra Pradesh High Court in the L&T case.
The Andhra Pradesh Commercial Tax Authorities had demanded VAT from the main contractor on the value sub contracts. The sub contractors were registered dealers and had paid VAT on the value of sub contracts executed by them. The plea of the main contractor that this will result in double taxation was not accepted by the Authorities. The Andhra Pradesh High Court vide its decision dated 12 Oct 2006 upheld the plea of the main contractor.