VAT charge on gross amount instead of basis amount

[Jignesh Shah]

We are service proivder of Maintenance & Repair service to corporates. We have one issue regarding double taxation: As per I know VAT Rules says VAT always to be charged on total amount instead of basis amount. But our client need clarification for that. Thay argued i.e. vat charge only material cost not on total means material + service tax amount. Please share and guide for the same.

AI Summary

VAT on gross amount: VAT and service tax may both apply to combined repair and maintenance charges.
Maintenance and repair combines supply of spares and repair work; if charges are billed separately VAT applies to the goods component and service tax to the services, but combined billing may attract both VAT (as a works-contract or on goods) and service tax depending on transaction characterization.