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Dear Sir/madam,
Is this possible that Service Tax and VAT on a similar item
at a time?
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Its possible to impose VAT & Service tax on same "item" for
example, Idly sales in hotel having AC facility. Idly is
material - so sales & serving on table is service - so
service. So On sale of food articles etc., both VAT &
Service Tax will be applicable. Like wise construction of
building - Supply of Material by steel, cement etc and
service by labour. However, on same "value" both is not
applicable. For example, in case of construction of building
having Rs.10 lac contract value, on Rs. 6.7 lacs VAT will be
levied. And on balance Rs. 3.3 lacs Service Tax will be levied.
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