Abatement on s.tax
This query is : Resolved
07 May 2012
In a work contract, If the work contract value is Rs. 100 and Vat is 4 %. Tell me how we calculate abatement and whether the Vat rate should also be abated
07 May 2012
In Works Contract you have two options
(i) Either deduct the value of goods involved in the execution of works contract and pay service at normal rate of 12% on service portion only
(ii) Or pay service tax at the rate of 4.8 % under Composition Scheme on whole value of Rs. 100 (assuming that Rs. 100 is the whole contract value)
As regards, VAT in both the case VAT amount shall not included in value of taxable service
(i) Either deduct the value of goods involved in the execution of works contract and pay service at normal rate of 12% on service portion only
(ii) Or pay service tax at the rate of 4.8 % under Composition Scheme on whole value of Rs. 100 (assuming that Rs. 100 is the whole contract value)
As regards, VAT in both the case VAT amount shall not included in value of taxable service
08 May 2012
But I am talking about the abatement i.e you get 67% abatement on Work contracts.
My query is related to deduction of abatement
My query is related to deduction of abatement
08 May 2012
Total value (Material + Service) 100
Less: Abatement 67% (as mentioned by you)
Amount on which Vat to be levied 33
Above applicable if no proper records are maintained to bifurcate the material & service component of the bill.
Less: Abatement 67% (as mentioned by you)
Amount on which Vat to be levied 33
Above applicable if no proper records are maintained to bifurcate the material & service component of the bill.
08 May 2012
Total value (Material + Service) 100
Less: Abatement 67% (as mentioned by you)
Amount on which Vat to be levied 33
Above applicable if no proper records are maintained to bifurcate the material & service component of the bill.
Less: Abatement 67% (as mentioned by you)
Amount on which Vat to be levied 33
Above applicable if no proper records are maintained to bifurcate the material & service component of the bill.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Fixe term employment
- Is any professional CA is here please reply
- Putting a heading on received mail
- Gift Received from nonblood relative
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
