Sir,
We are engaged in printing work. We print stationery, books, forms, brochures, catalogues, invitation cards, & such allied jobs as per the requirement & specification of the customers. Some customers provide us the raw material (Paper) & for some we purchase from market. As you know the process involves design, platemaking, printing, binding & packing. We have been charging VAT @ 5% on the total invoice value.
My question is : as per the new service tax criteria, are we supposed to charge ST from all customers? If yes, then VAT will still be charged?
Kindly enlighten on the issue.
thanks
NAVENDU
LASERPRINTS
Printing Business Seeks Clarity on VAT vs. Service Tax Applicability; Examines Works Contract Tax Implications A printing business inquires about the applicability of service tax on their operations, which include printing various materials with some customers providing raw materials. They have been charging VAT at 5% and seek clarification on whether they should also charge service tax under new criteria. One response suggests that printing does not attract service tax due to the absence of design work and VAT payment. Another response indicates that printing is subject to Works Contract Tax (WCT) under VAT, referencing the principles from a specific legal case. (AI Summary)