Issue of Service Tax & Vat, VAT + CST

[Md.Shahnawaz sonu]

Dear Sir

Kindly advice for service tax & vat

We are Govt Contractor (eligible for Advertising & Construction work)

Kindly advice for bifruction of service tax & vat

How much we have to charge vat & service tax on single bill(Service & Material both used in 1 Bill)

Posts / Replies

[Pradeep Khatri]

DVAT @ 12.50% on the 75% value of the Contract will be charged if you don't maintain the separate acconts for labour and Material.

Service tax will be paid @ 4.80% on the Gross value of the contract , if you are body corporate, otherwise provisions of reverse charge mechanism will be applicable.

There are two more methods under which you can calculate the liability of service tax i.e. on the 40% of the value of the contract you may pay service tax @ 12.36% or under Rule 2(A) bifurcate the value of goods and pay the service tax on remaining amount.