sumit (Industrial Trainee at EY) (366 Points)
14 December 2013Ours is a client engaged in providing comprehensive AMC services for lab equipments. It charges service tax on 65% of total amount and VAT on balance 35% to its customers
I wanted to ask is it a correct method??
I do not find any such rule or notification about service tax..Request you to please respond at the earliest and refer the section or notification no. for the same
GAUTAM SHARMA
(Audit Assistant)
(353 Points)
Replied 14 December 2013
Please Elaborate the Situate clearly
Rohit Aggarwal
(ACA Bcom (H) MBA MCom)
(470 Points)
Replied 15 December 2013
Dear Sumit
You are right that there is no such rule or notification for it but for further clarification of your situation may I ask you to attach here an invoice of your client with details. Only then the members will be able to answer you correctly.
Thanks.
sumit
(Industrial Trainee at EY)
(366 Points)
Replied 15 December 2013
Invoice copy is not available with me.. But its like the total payment for service is 20 lakhs. Out of which service tax is being charged on 65% i.e 13 lakhs and VAT is being charged on 7 lakhs. According to my knowledge as per the latest laws in case of an activity including both sales and service, the tax is to be charged based on the dominant feature whether it is service or sale and service tax or VAT should be charged on total amount accordingly.
Request you to please help me out
CAclubindia
