24 May 2016
We are Builders, while paying VAT or TDS , we are usually include swachh bharat cess in while calculating Works Contract value for MVAT. Till now no notification has come regarding this,But is it correct to pay Tax on Sawchh bharat cess at the time of paying VAT.
Example : Works Contract Value for MVAT : 100 Swachh Bharat Cess: 10 Total :110 MVAT @ 5% on 110//- = 5.5/-
Kindly Solve My query at the Earliest Dipenti Pandya
24 May 2016
Thank you very much sir, but my query is that we include swachh bharat cess amount which we get at the time of calculating service tax amount and same amount we added in Gross value for calculating VAT.
24 May 2016
yes when you calculate the service tax then you have take SBC in to account, and VAT not calculate on the taxable +service tax= due to no tax calculated on the tax. so you take only taxable amount for VAT calculation.
CAclubindia
