My client has received 2 bills from their service provider/Supplier.
1St bill;.
Item Value Rs. 50880.00
CST 2% on 75% of 50880 (Rs. 38160*2%) Rs. 763.20
Service Tax on 70% of 50880 (Rs. 35616*14%) Rs. 4986.24
SBCess on 70% of 50880 (Rs. 35616*0.5%) Rs. 178.08
Total Rs. 56807
2nd Bill
Item Value Rs. 69560.00
CST 12.5% on 75% of 69560 (Rs. 52170*12.5%) Rs. 6521.25
Service Tax on 70% of 69560 (Rs. 48692*14%) Rs. 6816.88
SBCess on 70% of 69560 (Rs. 48692*0.5%) Rs. 243.46
Total Rs. 83141.59
My querry is
1. is it possible to club both service and VAT invoice
2. In both the cases, out of 100, 75% considered for VAT and again 70% is considered for Service Tax. Effectively 70% of total value has attracted 14.5% on first case (2%cst+14% Serv tax) & 26.5% in second case (12.5% CST+14% Serv tax) and 25% of total value has not been considered either for VAT or Service Tax. how is this possible?
Suppose 75% of total value is material then VAT has to be collected on 75% of the value and Service tax needs to be collected only on 25%. is it not?
Can anyone help me to understand?
CAclubindia
