service tax and vat

[Dharmender Kumar]

Sir,

I have received a tax invoice from a party. the invoice related to supply and installation of Quick Heal Antivirus. The bill date is 21 April 2016 and in this invoice the party has claimed service tax 14.5% and VAT 5% on same bill value. So you are requested to please suggest me The same charges are applicable on Invoice or not. The other details are given below:-

40 No. Antivirus @1800/- per Antivirus = ₹ 72,000/-

Service Tax14.5%= Rs.10,440/-

Vat Output 5% (Sale)= ₹ 3,600/-

Departmental Charges (0.25%)=Rs. 180/-

So please help me and suggest me the above mentioned tax calculation are correct or not as per point of taxation and Law also.

AI Summary

Service Tax and VAT Both Apply to Quick Heal Antivirus Invoice, but Full Value Taxation is Incorrect. A query was raised regarding the applicability of service tax and VAT on an invoice for the supply and installation of Quick Heal Antivirus. The invoice dated 21 April 2016 included a service tax of 14.5% and VAT of 5% on the same bill value. Responses indicated that both taxes are applicable: service tax on the service portion and VAT on the supply portion. It was noted that charging both taxes on the full invoice value without considering standard deductions for composite contracts is incorrect. The issue of blocked working capital due to both taxes being charged was also mentioned.