while discussing tax he applicabaility of service tax for works contracts i was told by the supt that service tax is payable even when the vat is paid on compsite works contract .
The person pays VAT on the basis of percentage on the works contract at a specefic percentage.
In otherwards is VAT and service atx payable for the same works contract?
yes both are to be paid vat & st
kindly byfercate the amt in goods & service & apply the tax
in service tax there is abatment pls refer.
Service Tax is to be paid on service portion on execution of the work contract i.e gross amount of the contract minus value ofthe property transferred in execution of the contract.so,it may be possible that you pay VAT on value of property transferred but on service portion Service tax is required to paid.
Triveni Turbine Limited
Bengaluru
CA
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