https://www.taxtmi.com/forum/issue?id=110684 VAT applies to the supply portion (sale or transfer of right to use) while service tax applies to the service component (installation or intellectual property service); for composite contracts the supplier may opt for a composition scheme or apply a state-prescribed standard deduction to separate supply and service values. Valuation rules lack uniform percentage allocations, leading suppliers sometimes to charge both taxes on full value, though state VAT deductions and credit mechanisms like cenvat may affect correctness and working capital impact. en-us Mon, 25 Jul 2016 17:16:07 +0530 Thu, 23 Jan 2025 15:56:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=110684 VAT applies to the supply portion (sale or transfer of right to use) while service tax applies to the service component (installation or intellectual property service); for composite contracts the supplier may opt for a composition scheme or apply a state-prescribed standard deduction to separate supply and service values. Valuation rules lack uniform percentage allocations, leading suppliers sometimes to charge both taxes on full value, though state VAT deductions and credit mechanisms like cenvat may affect correctness and working capital impact. Discussion-Forum Service Tax Mon, 25 Jul 2016 17:16:07 +0530 https://www.taxtmi.com/forum/issue?id=110684