author : SHAIKH AIJAZ ABU MIYAN
Posted On : 8/22/2008 6:34:01 PM
An assessee has paid Vat relating to F.Y.2006-07 in April-2007, but respective provision as 'Vat payable' has not been made as on 31.03.2007. Whether such payment is allowed as per the provisions of sec.43B?



Expert : Chezhiyan.K
Posted On : 8/22/2008 7:05:35 PM
Vat Payable is Not an Expense..

What ll You Disallow?


Answer - Fisrt Of All, I Would Again This Expert Not to give answers if not sure and just for sake of points.

VAT Is Certainly an expenditure and subject to sec.43B

and secondly how come u tallied the balance sheet if all liabilities are not shown. this would tantamount to window dressing of accounts.

Dear Friends,

My Client is a Software Seller, they buy and sell softwares to colleges and institutions, now their suppliers started charging service tax as well as vat?
how should we charge our customers,

Method 1

Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX+YYY) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$

or Method 2

Price = XXX
Service tax @12.36%
on XXXX = YYY
Vat on (XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ)= $$$

or Method 3

Price = XXX
Vat @ 4%on (XXX) = YYY
Service Tax @12.36%on(XXX) = ZZZ
Bill Amount(XXX+YYY+ZZZ) = $$$


Please Help Me in This Case Many Suppliers Charges in Different Methods Method is been observed in many suppliers Invoices Which is Correct Method For Calculation


Either Vat has to be charged or service tax
vat has to be charged when the software is an off the shelf software

service tax is to be charged when the software is a customized software.
.

SIR


I WANT TO KNOW THAT "WHETHER THE VAT APPLICABLE ON SALE OF OLD VEHICLE" IN SERVICES SECTOR COMPANY.

MY CA HAS SAID THAT VAT WILL BE APPLICABLE ON SALE OF OLD VEHICLE. HOWEVER THE COMPANY DID NOT CHARGE THE VAT ON SALE OF OLD VEHICLES AS YET.


Answer Is Yes

Vat Is To be Charged.

If The Co. Has Sold The Vehicle Without Charging VAT Then The Selling Price Would Be Considered As Inclusive Of VAT.

Please suggest whether the VAT input can be adjusted against the CST liability.
Please provide the relevant provisions if possible

Thanks

SIR


I WANT TO KNOW THAT "WHETHER THE VAT APPLICABLE ON SALE OF OLD VEHICLE" IN SERVICES SECTOR COMPANY.

MY CA HAS SAID THAT VAT WILL BE APPLICABLE ON SALE OF OLD VEHICLE. HOWEVER THE COMPANY DID NOT CHARGE THE VAT ON SALE OF OLD VEHICLES AS YET.

Hi!

i'll be cleared it by an example.

A (Noida) consumable item purchased from B (Delhi) on which full tax rate is 12.5%. A want this material by giving c form, B says he will charge 4% against C form. Is B is right or not.

if right then i want to know what is the exact rate of CST against C form.

Vendor is charging 8%VAT on the whole bill for construction of foundation for telcom tower in Maharshtra. He is also charging Service tax on 33% of the bill value.

Is it correct beacause on 33% percent of the bill value both VAT and Service tax is being charged.

A manufacturing company buys some input item which is subject to VAT. A part of this input is used by the company in manufacturing a product which is not subject to VAT but to earlier Sales Tax. The company makes other products which are subject to VAT.

Now please provide your professional views on the manner in which the company shall compute the VAT credits that should be reversed for the product that is not under VAT. The company cannot do this on the basis of input/output ratio because that is complex and unascertainable.

What is the penalty for filing Belated VAT Return, If the turnover contains only exempted goods and nil tax is payable?

Ours is a 100% EOU registered under STP Scheme and operating from Feb 2005 in Karnataka. We are importing capital goods from different countries and would like to know whether this will attract Entry Tax under the The Karnataka Tax on Entry of certain Goods AND
under The Karnataka Special Tax on Entry of Certain Goods Act, 2004.