While calculating the liability for a partiular tax period we take set off of taxes paid on purchases. But whether we have to consider stock factor while calculating set off
ie whether
Set off available = Tax paid On (Op st + Purchases - Cl Stock)
or
Set off available = Tax paid on Purchases

VAT or Service Tax

A newly incorporated firm is engaged in Advertising Agency Business (i.e. making and preparation). It designs and prints flex hoardings for its clients. It has an annual turnover of around 12 Lakhs.

The purchase bills for raw materials are of 4% and 12.5% VAT items (obviously, the firm had to pay vat on purchase) eg, it paid 4% VAT on purchase of Flex, 12.5% on purchase of clips etc. My questions are:

1. Does the firm, being an advertising agency, need to file VAT Return or Service Tax Return.

2. If the firm needs to file service tax return and charge service tax to its clients, then on what value should the tax be calculated. (Whether the cost of raw materials consumed should be considered for computing service tax or should be excluded...as the cost of all the raw materials cannot be bifurcated precisely e.g. ink used in printing)

3. Can the firm enjoy the VAT input on purchases. If yes, how?

4. What will be the best way to record purchases and sales in the books of accounts (plz give specimen entry)

5. The firm has already got VAT Registration. In case VAT is not applicable, what should be done in present circumstances.

If a person, unregistered dealer, makes a sale by raising taxable invoice bearing wrong TIN saying that he is registered dealer. Can a purchaser avail set-off where purchaser does not know that seller is unregistered dealer?

Dear Sir/Mam,

I have been auditing the Hotel. I have a query regarding wheather can the co, take credit of vat paid on the purchase of Material for the construction, furniture and fixtures, paints, saintary fitting,etc........., pls quote the relveant section as per VAT Act, it will be useful for me for the report

Hello,
We are a Construction Company building
townships.

There is an agreement between two of our
group of company where Company A is under
obligation to estblish the Infrastructure.

My query is that How Company A should
raise bills for Roads, Water-supply
networks, electric network etc.???

As both Material & Labour are used, how
we should calculate VAT on each bill?

Do we require to show VAT on each bill
separately? or we can give cum-vat bill?

At the time of filing of return, how
we should show?

One more point is that we have applied
for VAT Tin and we have started purchasing
material with TAX INVOICE. Hope it wont
take away our right for input credit.

Plz suggest in details.

Bhargav

Dear Sir,
Ours is a software developing MNC Co. also performing AMC's,and submitting VAT-120, composition of Tax, do we need to file Form 240 within 31st December ( Auditied Statement of Accounts U/s 31(4).
Turnover includes service payments, software development every thing around 300 lakhs.

Please guide me in this matter.

Regards,
AMAR.

workshop owner, working boshpump repairs
seeking vat registration, sales purchase of spare parts not one lac severny thousand, labour charges charged more than four lacs the total five lac seventy thousand, is it possible to have the vat registration, works contract registration, or not liable pl clearify the confusion.maharashtra pune

Sir,

I have following doubts, please guide me

1.) What is the last date of filing MVAT audit report for the F.Y. 07-08.

2.) Whether we have to give only list of pending forms C,H, I etc. or we have to pay liability of tax for non receipts of above forms

3.) We are accounting our sales transaction in tally as under

Basic Sale ( Under sales group in tally)

Output Vat ( under duties & taxes in tally)

So in one of our company in profit & loss account the sale is showing Rs. 38lakhs & if we add vat then it comes Rs. 41 lakhs.

Then in such case whether it is mandatory to do the VAT audit.

Sudheer

Dear Sir,

My Query is as Below,

We ordered(From Delhi) some Tailormade T-shirts to a Vendor outside Delhi,He Charges CST will we liable to deduct TDS & WCT.

Please provide some case lawas to support this

Regards
Sanjeev

Pls suggest me what is the rate and how to calcalate sales Tax if applicable.