Service tax and VAT at same Invoice

[Naveen Sharma]

Dear all,

i have received a bill of car rent from Telangana, they have charged service tax along with VAT.

is this invoice is correct, as service tax and vat cant be charged in same invoice.

please help me with this issue.

Thanks

AI Summary

Car Rental Invoice Query: When Both Service Tax and VAT Apply Due to Control and Deemed Sale Rules A user raised a query about receiving a car rental invoice from Telangana that included both service tax and VAT, questioning its correctness. Responses clarified that service tax applies when the service provider retains effective control, while VAT applies if the control is transferred to the user. A detailed explanation was provided, citing legal precedents and guidelines, indicating that both taxes can be applicable due to the deemed sale and service nature of the transaction. The discussion concluded that if the car owner maintains control, both taxes are correctly charged, supported by legal interpretations and contractual evidence.