TAX INVOICE FOR SERVICE TAX AND VAT

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IN CASE OF CIVIL CONSTRUCTION BOTH SERVICE TAX AND VAT WILL BE CHARGED IN TAX INVOICE. FOR INSTANCE WEST BENGAL WORKS CONTRACTOR RECEIVED ₹ 1000000 AS CONTRACT PRICE FOR REPAIRING ROAD.

NOW WHAT WILL BE THE VAT AND SERVICE TAX AMOUNT TO BE ADDED IN TAX INVOICE TO BE ISSUED BY THE WORKS CONTRACTOR.

AI Summary

Clarification on VAT and Service Tax for Road Repair Contracts: Refer to Section 18, Rule 30 of WBVAT Act. In a discussion forum, a query was raised about calculating VAT and service tax on a 1,000,000 contract for road repairs in West Bengal. It was clarified that both VAT and service tax should be included in the tax invoice. One response explained that VAT applies to materials and service tax to labor services. Another recommended following the invoicing system described. A third response advised consulting Section 18 and Rule 30 of the WBVAT Act and considering a composition scheme for service tax calculation.