Servcie tax on Information technology software service

[Asked by Guest]

Dear Sir,

One of our Vendor providing AMC service of System Software.Under his invoice he is charging Service tax 14% on 90% of value and Vat on 10% of value.Therefore please explain whether he has charged correctly and if yes please give us any clarification, references regarding this ,Thanks & regards.

AI Summary

Service tax principle: levy applies to the full value of service; VAT is limited to goods, affecting invoicing.
A vendor providing AMC for system software charged service tax on 90% of the invoice value and VAT on 10%. The advisor stated that service tax is leviable on the gross value of the service rendered and that VAT applies only to goods, adding that a detailed invoice is required to determine the correct tax treatment.