VAT payable on Service tax

[Mukund Honkan]

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

[YAGAY and SUN]

in Maharashtra VAT, Sales price does not include the amount of service tax as service tax is on services not on goods.  Kindly check the definition of the Sales Price under section 2(25) in this regard.

AI Summary

Service tax exclusion from VAT taxable value: service tax treated separately and not added to sales price.
Service tax charged on the service component is treated separately and is not added to the VAT taxable sales price because VAT applies to goods while service tax applies to services; taxpayers should consult the statutory definition of Sales Price to determine whether service tax is included in the VAT base.