Vat on Job wors

[krunal degada]

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

[YAGAY andSUN]

Under Works Contract , both Service Tax and VAT is payable, even partial reverse charge is also applicable.

AI Summary

Works contract taxability: both service tax and VAT may apply, with partial reverse charge obligations for jobwork services. An assessee providing electrical job work, commissioning, installation and repair sought whether service tax charged under a 40%/60% composition approach, and whether VAT need be charged or could be avoided by adopting a VAT composition scheme or reverse charge. The advisory response: these activities qualify as works contract taxation and attract both Service Tax and VAT; partial reverse charge provisions can also apply.