The petitioner is required to calculate taxable turnover by ...

Exclusion of service tax component from VAT calculation upheld for works contracts.

Case Laws VAT / Sales Tax

October 29, 2024

The petitioner is required to calculate taxable turnover by excluding turnover not subjected to tax, exempt goods, and labor/service charges for works contracts as per Section 14 of the Gujarat Value Added Tax Act, 2003. VAT is payable on the taxable turnover, with an option for lump sum tax u/s 3 read with Section 14. The issue pertains to whether the 'service tax' component collected by the petitioner should be included in the 'sale price' for VAT calculation. Referring to the Ambuja Cement Ltd. case, the Court held that the definition of 'sale price' u/s 2(24) is inclusive, not exhaustive. However, the intention is to include only specified duties/taxes like excise/customs, not service tax. Therefore, the petitioner is not liable to include the 'service tax' component in the 'sale price' for VAT computation. The orders setting aside composition tax permission solely on this ground are quashed, and the petitions are allowed.

View Source

← Previous Next →

The petitioner is required to calculate taxable turnover by ...

Exclusion of service tax component from VAT calculation upheld for works contracts.

Case Laws VAT / Sales Tax

October 29, 2024

You may also like:

Service tax on works contracts and the taxability of the value of goods used in such contracts. It clarifies that service tax can only be levied on the service...

Classification of services - Goods or service - No VAT may be payable on some goods under the state laws but that does not convert the Works Contract Service into a pure...

Valuation - Works contract service - Composition scheme - Where the value has already been split as per the state law and VAT has been paid on the goods component of the...

Levy of Service Tax - liquidated damages received - The demand of service tax on late payment surcharge meter renting charges and supervision charges are set aside. The...

Valuation - Works contract or not - exclusion of value of material on which VAT has been paid - Commissioner (Appeals) has dropped the demand holding that the activity...

Eligibility of avail ITC - Works contract services - input services - Housing society - The society itself is not works contract service provider, nor it is in the...

Valuation of service - works contract service or not - The CESTAT held that the appellant’s contracts were clearly split into goods and services, which did not meet the...

The case involved a dispute regarding the classification of services provided by the appellant as Works Contract Service or Construction of Residential...

Demand of service tax on advances received - Validity of demand made, without classifying the services - the merit classification of the activity undertaken by the...

Input tax credit (ITC) on the inward supply of works contract service - outward supply is also works contract service - applicant is supplying works contract service to...

Levy of service tax - works contract service - contract between the supplier of RMC i.e. appellant and buyer of RMC - manufacture of Ready Mix Concrete (RMC) - activity...

Erection, commissioning or installation service - Since the appellant admittedly provide works contract service and the definition of works contract service specifically...

Computation of Service tax liability - Works Contract - the order of Court below calculating the service tax liability on 100% of the turn-over under works contract...

Service tax on Works Contract - Section 65(105)(zzzza) - Whether works contract service is chargeable to service tax, prior to 1.6.2007 - matter referred to 5 member bench - AT

Works Contract Service - In cases where VAT has been paid on the full value of the contract, there is no value attributable to service and consequentially no service tax...

Quick Updates: