01 June 2016
The firm is in business of construction of flats and it is receiving advance from customers before completion of construction. So firm is filing VAT 100 by treating advance received as turnover and the calculation goes as below:
ADVANCES FROM CUSTOMERS(A) 500000.00 LESS : REFUNDS(B) 0.00 (C)=A-B 500000.00 LESS: KPTCL / BWSSB DEPOSIT(D) 0.00 (E)=C-D 500000.00 LESS: 30% LAND COST(F)=E*30% 0.00 (G)=E-F 500000.00 LESS: LABOUR & LIKE CHARGES - 30% (H)=G*30% 150000 (I)=G-H 350000.00 LESS : SERVICE TAX COLLETED (J)=(A-L)*3.09/103.09 13710 (K)=I-J 336290 LESS: VAT COLLECTED (L)=(K*14.5/114.5) 42587 Taxable Turnover 293703
Firm is not under composition scheme. Kindly help me out on how to calculate VAT and service tax. Whether what has been done is correct or not? Here as per books there are refunds but not considered while calculating.
CAclubindia
