Sir,
my one of client prividing electical service likes jobworks, commissioning, installation & repair -maintenance but my query is when he raised the bill for the job works the he claim service tax 4.944 means 40% & 60% schem and he can not ask any vat from customer but he purchase material with vat.now that he want to go with the scheam of composition for hte vat -gujarat?what is the vat rate in composition scheme? he can mention vat rate in bill or demand vat from client.? what is the service tax % on job works? can he fall in under reverse charge scheame? pls give me some format of sale invoice with job works & Vat ?
thanks
krunal degada
Electrical Services Firm Explores VAT Composition Scheme; Considers VAT Charges and Service Tax on Job Works A client providing electrical services such as job works, commissioning, installation, and maintenance is inquiring about VAT and service tax implications. The client currently charges a service tax of 4.944% under a 40% and 60% scheme but does not charge VAT to customers despite purchasing materials with VAT. They are considering switching to a composition scheme for VAT in Gujarat and seek information on applicable VAT rates, the possibility of charging VAT to clients, and the service tax percentage on job works. Additionally, they inquire about eligibility for the reverse charge scheme and request a sales invoice format for job works including VAT. The reply indicates that both service tax and VAT are payable under a works contract, with partial reverse charge applicable. (AI Summary)
TaxTMI 
TaxTMI 
