Vat or st

AMIT MORYE (MANAGER- SERVICE TAX ) (102 Points)

31 August 2012  
Can ST and VAT be charged on ‘software license subscriptttion’ on entire amount at the same time? Vendor has given a bill in following manner. Subscriptttion 100 Vat 5 ST 12.36 TOTAL 117.36 Can we defend this bill giving following Para of Supreme Court Judgment? In the case of Imagic Creative Pvt. Ltd vs CCT Supreme Court held that. Payments of service tax as also Value Added Tax are mutually exclusive. Therefore, they should be held to be applicable having regard to the respective parameters of service tax and the sales tax as envisaged in a composite contract as contradistinguished from an indivisible contract. It may consist of different elements providing for attracting different nature of levy. In a case of this nature, sales tax would not be payable on the value of the entire contract; irrespective of the element of service provided. [Para 28] [475-F-G]