Servcie tax on Information technology software service, Service Tax

[SANDESH SHINDE]

Dear Sir,

One of our Vendor providing AMC service of System Software.Under his invoice he is charging Service tax 14% on 90% of value and Vat on 10% of value.Therefore please explain whether he has charged correctly and if yes please give us any clarification, references regarding this ,Thanks & regards.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Sir,

Service tax @ 14% is leviable on the gross value of service rendered. VAT is meant only for goods. If you give the invoice in detail then it could be analyzed.