Software having vat+service tax

Save Share

This query is : Resolved

Deepak (Querist)

06 August 2014 Want to know how I passed entry of software AMC purchases having 70% Service Tax and 30% VAT on it, confusion is whether we can post Basic with Service Purchase or VAT purchase or bifurcate into both in tax ratio?
please suggest with clause...

CA UMESH DULAL

CA UMESH DULAL (Expert)

06 August 2014 The basic logic to create separate head of Input service/input VAT is to separate the expenses from assets as it is allowed to set off against tax liability. So, If you are allowed to adjust input with output, you have to create separate head. If you are not allowed to adjust input with output, you have to write off as expenses. So no need to bifurcate.

Rupesh Jain

Rupesh Jain (Expert)

06 August 2014 if you want to take the credit of service tax and vat pls confirm from consultant that cenvat will available on that software or not. otherwise you have to pay huge intt and penalty under the both act

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now