how to compute service tax in case composite contract and karnataka vat

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..... Dear Experts, We are registered Private Ltd Company holding Vaiid Karnataka VAT Registration and Service Registration Number. We got a composite work order for AC AMC for Rs 50000/-( which is inclusive of labour and material supply). Under Karnataka VAT Act we have been paying Karnataka Vat on 30 percent of Rs 50000/- at the rate of 14.5 percent which worked out Rs 2175/- Now my query .....

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..... is will Service Tax payable after abatement of 70 percent on Rs 35000/-- 0r 32825 which (35000-less 2175/-). Request to clarify will service tax payable on Rs 35000/- or after deducting vat of Rs 2175/- 32825/- Regards, c.k.manjunath - Reply By Rajesh Nathoo - The Reply = Dear Mr. Manju, Levy of Service Tax and VAT are independent . You need not p .....

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..... ay on 70 percent of 50000, you need to pay only on 40 percent of 50000, i.e. 20000 at the rate of 12.36 percent . You cannot deduct VAT from 20000 as the amount 50000 is already exclusive of Service Tax and VAT. - Reply By Mukesh Shah - The Reply = Hi Manjunath, As per Service Tax (Determination of Value) Rules, 2006 , Rule 2A (ii)(B) , maintenance of AC will be liable at 70 percent val .....

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..... ue of gross amount charged. In your case, Service Tax liability is on Rs. 35000/-. ie., Rs. 4,326/- - Reply By manju nath - The Reply = Thank you for reply. - Reply By manju nath - The Reply = Thank you for reply. - how to compute service tax in case composite contract and karnataka vat - Query Started By: - manju nath Dated:- 16-12-2013 Service Tax - Got 4 Replies - Service Tax - Discus .....

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..... sion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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