Is the department is right?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 November 2010
Sir,
We are undertaking execution of interior work as per the drawings provided by the Architect. We have registered under Interior Decorator Service. The department says that since we are not giving any advice or consultancy our services are taxable under Construction (Finishing and Completion) Services and ST is payable on gross value without abatement. Is that correct?
Secondly, Tax is being arrived on the following method.
Sales as per Balance Sheet 10872500
*Labour Charges received 2065265
Advances received 1065208
TDS deducted 565902
Total 14568875
Value on which VAT paid @ 12%(-) 2586966
Sundry Debtors (-) 1065896
Total Taxable Value 10916013
Cum tax Value 9715212
ST payable 12.36% on 9715212 = 1200800
*Pure labour charges without any material involvement
My doubt is
Is TDS is includable in the Value?
We are charging ST in our invoices. But ST is calculated on the receipt basis? In such a case is cum-tax value is applicable?
Whether the VAT value deduction is correct?
Overall is that above calculation is correct?
Thanking you Sir,
We are undertaking execution of interior work as per the drawings provided by the Architect. We have registered under Interior Decorator Service. The department says that since we are not giving any advice or consultancy our services are taxable under Construction (Finishing and Completion) Services and ST is payable on gross value without abatement. Is that correct?
Secondly, Tax is being arrived on the following method.
Sales as per Balance Sheet 10872500
*Labour Charges received 2065265
Advances received 1065208
TDS deducted 565902
Total 14568875
Value on which VAT paid @ 12%(-) 2586966
Sundry Debtors (-) 1065896
Total Taxable Value 10916013
Cum tax Value 9715212
ST payable 12.36% on 9715212 = 1200800
*Pure labour charges without any material involvement
My doubt is
Is TDS is includable in the Value?
We are charging ST in our invoices. But ST is calculated on the receipt basis? In such a case is cum-tax value is applicable?
Whether the VAT value deduction is correct?
Overall is that above calculation is correct?
Thanking you Sir,
Rajesh Kumar
(Expert)
01 December 2010
The classification done by you appears to be very correct. Overall the calculation is correct.
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