Dear All,
In the Assessment of our company in the Rajasthan State the C.T.O. consider Service Tax as a statutory levy and include the same in taxable turnover for the purpose to levy VAT.
The defination of Sale Price under RVAT Act, 2003 is given below:-
I request your help on the matter that whether Service Tax is a Statutory Levy or not? If you have any Case law on the same matter then please reply me.
Thanks in Advance.
Jitendra Jhanwar
service tax is related to service provided and payable to central govt, charging from the receipents of services,
1) for sales tax / vat purpose its excluded from tax assessment
2) dealer has to maintain seperate series of invoice for sales and services
3) service tax invoice must not be made in "tax invoice" as refered under vat rules.
4) under Works Contract service tax /vat both are applicable, having cascading effect.
I feel that there is a error in representation of your accounts to the AO at the time of assessment.
Dear Mr. Sharma,
Have u any case law regarding above point ?
Jitendra Jhanwar
Vat is related to the sales of goods where the statuary obligations are excise and edu cess , in a goods sales service tax is not applicable- its simple logic
a few cascading areas are still where services are treated as goods in WCT/ Software, but most of the parts services are not goods, hence vat does not deal with service area in those unless they are catagorized in goods as per vat of the state.
service tax is applied on services provided and its not accounted in sales or sales invoice,
how come the STO got the service tax figure from your returns and records ?
request you to share some more facts of your return summery provided and the assessment order to discuss more.
CAclubindia
