TaxTMI 
TaxTMI 
We are located at Maharashtra, undertaking turnkey contracts from Municipal Authorities, We have composite scheme, whether service tax to be included while computing VAT . Thanks Mukund M Honkan
VAT payable on Service tax
Mukund Honkan
Service Tax Excluded from VAT Calculation in Maharashtra Turnkey Contracts, Clarified Under Section 2(25) A query was raised regarding whether service tax should be included when computing VAT for turnkey contracts in Maharashtra. The response clarified that in Maharashtra, the sales price for VAT purposes does not include service tax, as service tax applies to services rather than goods. It was advised to refer to the definition of 'Sales Price' under section 2(25) for further clarification. (AI Summary)