Charging of vat for amortisation value
This query is : Resolved
02 August 2012
Dear Experts,
Please give your expert opinion on below issue.
For a customer supplied Mould/Tool, please confirm charging of TNVAT is correct or not as we do it for charging EXcise duty. If the below calcuation is not correct please clarify and how it should be?
Particulars
Basic value for 100 Nos x Rate/No
Add: Tool Amortisation cost/No x 100 Nos
(only for taxation purpose)
ED Assessable Value
Add:Excise Duty @12%
Add: Ed. Cess 2% ED
Add: SH Cess 1%ED
VAT Assessable Value
Add: TNVAT @5% on above
Total bill value
Less : Amortisation cost
Balance Charged to Customer
G. Sreenivasan
Please give your expert opinion on below issue.
For a customer supplied Mould/Tool, please confirm charging of TNVAT is correct or not as we do it for charging EXcise duty. If the below calcuation is not correct please clarify and how it should be?
Particulars
Basic value for 100 Nos x Rate/No
Add: Tool Amortisation cost/No x 100 Nos
(only for taxation purpose)
ED Assessable Value
Add:Excise Duty @12%
Add: Ed. Cess 2% ED
Add: SH Cess 1%ED
VAT Assessable Value
Add: TNVAT @5% on above
Total bill value
Less : Amortisation cost
Balance Charged to Customer
G. Sreenivasan
02 August 2012
Dear Mr G.S,
In my opinion, VAT has to be calculated after deducting the Amortisation cost.
i.e ED assessable valu +ED+ CESS= Less amortisation cost and then add applicable vat.
In my opinion, VAT has to be calculated after deducting the Amortisation cost.
i.e ED assessable valu +ED+ CESS= Less amortisation cost and then add applicable vat.
04 August 2012
Dear Mr. RRK,
Thanks for your reply. Could anyone please clarify the reason for this?
GSV
CMD
Thanks for your reply. Could anyone please clarify the reason for this?
GSV
CMD
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